Khyber Pakhtunkhwa Launches Six-Year Fiscal Reform Program with World Bank

ISLAMABAD: Khyber Pakhtunkhwa (KP) is set to initiate a comprehensive six-year fiscal reform program, supported by a $200 million loan from the World Bank, aimed at enhancing its fiscal system and improving service delivery for its 41 million residents.

The World Bank is anticipated to approve the loan from the International Development Association (IDA) later this month, which will serve as part of a broader $650 million financing framework for the fiscal years 2027-32. The KP government will contribute the remaining funds to ensure the program’s successful implementation.

This initiative, known as the Public Resources for Inclusive Development (PRID) Multiphase Programmatic Approach, excludes taxation interventions in the merged districts and former Provincially Administered Tribal Areas (PATA) due to the ongoing tax-exempt status granted by the provincial government. A $20 million investment project financing component will focus on providing technical assistance in these areas.

The launch of this program is expected to significantly enhance the efficiency and resource allocation of public services in KP, ultimately benefiting the province’s residents. As the program progresses, stakeholders will monitor its impact on local governance and service delivery. The KP government is poised to outline further steps in upcoming meetings with World Bank officials.