World Bank Evaluates KP Project Worth $118 Million as 'Semi-Acceptable'
lET'S TALK ABOUT KHYBER PAKHTUNKHWA AND THEIR FINANCIAL GAME:
Things are shaping up in Khyber Pakhtunkhwa, and it's all thanks to a $118 million project funded by the World Bank.
The project, known as the Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (KPRM-PRMP), started in June 2019 with the objective of boosting local revenue collection in Khyber Pakhtunkhwa and improving the management of public resources. The project is expected to wrap up by June 2026.
Initially, the project was scheduled to close on December 31, 2024, and its cost was set at $110.85 million. However, the project faced delays and the closing date was extended to June 2026. As of now, $96.36 million has been disbursed, while $19.05 million remains undisbursed.
The province is pumping all their funds into nearly completed projects.
The project's implementation progress has also been rated as moderately satisfactory. In recent months, there's been substantial progress. Key achievements include enhancing cash management, digitalizing Urban Immovable Property Tax records in 10 cities, spending 82% of the Annual Development Funds on capital investments in the fiscal year 2024, and rolling out the Financial Management Information System (FMIS) to 127 Tehsil municipal authorities. The operation support unit and shared services unit have been revamped, and plans have been revised to align with the project's revised timeline.
According to bank documents, Khyber Pakhtunkhwa collected tax revenues of Rs56 billion from own sources in the fiscal year 2024. Approximately 57% of tax revenue came from sales tax, while 25% came from land revenue, stamp duty, property tax, and motor vehicle tax. The final audited numbers for tax revenue collection will be available by June 2025.
As of February 2025, the province's tax collections stood at Rs36 billion or USD 129 million against a target of USD 212 million for the fiscal year. The provisional numbers for own source tax collections during the current fiscal year will be available by June 2025.
All in all, it's a positive trend for Khyber Pakhtunkhwa's financial future. They're making good strides with the aid of the KPRM-PRMP project, and it's looking promising for their fiscal reforms and revenue targets.
- The Khyber Pakhtunkhwa government is directing all their funds towards nearly completed projects.
- In the fiscal year 2024, the province collected tax revenues of Rs56 billion from own sources, with 57% coming from sales tax and 25% from land revenue, stamp duty, property tax, and motor vehicle tax.
- As of February 2025, Khyber Pakhtunkhwa's tax collections amounted to Rs36 billion or USD 129 million, which is less than the targeted USD 212 million for the fiscal year.
- The project's revised timeline now aligns with the plans of Khyber Pakhtunkhwa.
- The KPRM-PRMP project, funded by the World Bank, has allocated a significant portion of the Annual Development Funds towards capital investments, spending 82% in the fiscal year 2024.
