Islamabad: Pakistan is moving to secure an additional USD 200 million (approximately Rs57.1 billion) in foreign financing for tax administration reforms, despite mounting scrutiny from planning authorities regarding the efficacy of nearly USD 4.7 billion previously borrowed from international development partners for similar projects.

The Central Development Working Party (CDWP), chaired by Planning Minister Ahsan Iqbal, on Friday recommended the Transforming and Digitalising Revenue Administration (TADRA) project to the Executive Committee of the National Economic Council (ECNEC), subject to a business model review by the Pakistan Institute of Development Economics (PIDE). The proposed ADB funded initiative aims to elevate Pakistan's tax to GDP ratio to 13.5 per cent by 2029 and expand the active taxpayer base to 12 million.

During deliberations, the Planning Commission and technical experts raised significant questions regarding data security, system redundancies, and the value for money delivered by earlier initiatives, such as the Pakistan Raises Revenue Project and the Tax Administration Reforms Programme.

Out of the proposed USD 200 million loan repayable over 25 years USD 81 million has been earmarked solely for consultancy services over a five year period. Alongside TADRA, the CDWP cleared or recommended several other major national initiatives, including the Rs37.2 billion PakSat 2 Satellite System, bringing the total value of projects considered during the session to roughly Rs116 billion.