World Bank Worried About Pakistan

As the country seeks to growth its tax-to-GDP ratio to 15 percent by June 2030, the World Bank has rated Pakistan's tax reform program as moderately satisfactory but flagged substantial risks to its implementation, including political and governance challenges.

Key points

• The $700 million Pakistan Public Resources for Inclusive Development program was approved by the World Bank's board on December 19, 2025.
• Pakistan's tax-to-GDP ratio is targeted to rise from 12.3 percent in June 2025 to 15 percent by June 2030.
• As moderately satisfactory overall, the Washington-based lender assessed its Pakistan Public Resources for Inclusive Development program, part of a broader financing initiative worth regarding $700 million.
• Separately, the bank assigned a moderate-to-substantial risk rating to the $70 million Connected Punjab Program.
• Nevertheless, the lender flagged delays involving the appointment of the chief statistician and the establishment of the governing council of the Pakistan Bureau of Statistics.

As moderately satisfactory overall, the Washington-based lender assessed its Pakistan Public Resources for Inclusive Development program, part of a broader financing initiative worth regarding $700 million. The program intends to backing economic stability, improve public service delivery and strengthen domestic revenue collection.

Pakistan's tax-to-GDP ratio is targeted to rise from 12.3 percent in June 2025 to 15 percent by June 2030. The World Bank assigned the program a substantial risk rating, citing political and governance reservations alongside risks related to the economy, institutional capacity, financial management, sector policies, and environmental and social standards. Pakistan Assures IMF Subsidies Will Be Limited.

Meanwhile, the bank remarked progress had been robust throughout most disbursement-linked indicators, reflecting continued momentum in the reform program. The administration is additionally working to operationalize technical assistance and implementation arrangements after adjustments to project activities and cost allocations.

Nevertheless, the lender flagged delays involving the appointment of the chief statistician and the establishment of the governing council of the Pakistan Bureau of Statistics. The chief statistician position has remained vacant since September 24, 2026, despite a program requirement that it remain filled throughout implementation.

For context, the administration and the World Bank are working to address these delays and reduce their impact on program conditions and reform implementation. Pakistan Wants New $7 Billion Saudi Oil Accord.

Separately, the bank assigned a moderate-to-substantial risk rating to the $70 million Connected Punjab Program. It runs through June 2031. The program intends to expand broadband connectivity, improve digital public services and artificial intelligence readiness, and rise cashless transactions.

Notably, the World Bank acknowledged solid backing for the Punjab program from the provincial administration. While the next steps include advancing an AI Oversight Committee, a data governance framework, a personal data protection strategy and a cybersecurity strategy, the Punjab Information Technology Board has secured provincial approval.

In practice, the $700 million Pakistan Public Resources for Inclusive Development program was approved by the World Bank's board on December 19, 2025. It supports federal and provincial reforms to mobilize domestic revenue, improve public spending and employ data and digital tools to strengthen service delivery. Stay Connected with ProPakistani.

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For now, world Bank Worried About Pakistan remains the part of the story worth watching, and further updates are likely as more details are confirmed.