Effective July 01, 2024: Provinces agree to evaluate properties not less than 85% of FBR Valuation Tables.

The World Bank and Pakistan have made changes to the timeframe and Disbursement Linked Indicators (DLI) under a $400 million loan known as Pakistan Raises Revenue (PRR). This includes increasing the tax-to-GDP ratio from 8.5% to 8.8% and implementing digital data sharing with all provinces.

As part of the loan agreement, the Federal Board of Revenue (FBR) will sign a Memorandum of Understanding (MoU) on automated data sharing with all four provinces to create a unified taxpayers’ database. The functionality of digital data sharing will be verified by an Independent Verification Agent (IVA).

The WB’s project, “Pakistan Raises Revenues,” states that the FBR has reached a written agreement with all four provinces regarding the valuation of immovable property tables. The revised property valuation tables will be implemented from the next fiscal year.
The FBR has also agreed with the provinces that the DC (District Collector) rates for property will be around 85% of the rates determined by the FBR. The revised valuation tables will be implemented from July 1, 2024.

The timeframe for the WB’s PRR project has been extended from June 2024 to June 2025. Under the revised framework, the FBR’s total collection as a percentage of GDP will increase from 8.5% in FY2023 to 8.8% in FY2025.

The indicator on Doing Business has changed because the WB no longer publishes its Doing Business Report. The methodology for measuring progress on this indicator will now use a case study approach.

The customs clearance indicator has been revised to use real-time data on goods declarations cleared within 48 hours (or two working days). This indicator is now called “Efficiency in Customs Clearance of Key Exports and Imports.”

The FBR has also signed agreements with the provinces on General Sales Tax (GST) input adjustments and digital data sharing systems. The FBR has harmonized the definition of economic transactions related to GST and GST on Services (GSTS) with all provinces.
To finalize the agreements on GST input adjustments, the FBR will prepare an MoU and agreement to be endorsed by the Ministry of Finance and supported by the Ministry of Inter-Provincial Coordination (IPC). The agreements will be verified by the FBR task team and reviewed by the WB.

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