ISLAMABAD: The World Bank has rated the implementation progress of the “Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management” project, valued at $118 million, as moderately satisfactory.
The project, aimed at enhancing the collection of provincial revenue and improving public resource management, was approved in June 2019 with a targeted closing date of June 2026.
The project, initially set to close by December 2024, faced delays and its cost was revised to $110.85 million. As of now, $96.36 million has been disbursed, with $19.05 million remaining undisbursed.
Key achievements of the project include improved cash management, digitization of Urban Immovable Property Tax records in 10 cities, and the deployment of the Financial Management Information System (FMIS) to 127 Tehsil municipal authorities. Additionally, 82% of the Annual Development Funds were allocated to capital investments in fiscal year 2024.
Khyber Pakhtunkhwa’s own-source tax revenue for fiscal year 2024 stood at Rs56 billion ($204 million), with 57% of the total revenue coming from sales tax. Other tax collections, including land revenue, stamp duty, and motor vehicle tax, contributed 25%.
Final audited tax figures for 2024 will be available by June 2025.
As of February 2025, the province has collected Rs36 billion ($129 million) in tax revenue, falling short of its target of $212 million for the fiscal year. Provisional figures for fiscal year 2025 will be available in June.
