Pakistan's Struggling Track and Trace System Impacts Revenue Collection
Pakistan's Federal Board of Revenue (FBR) is grappling with significant issues surrounding its track and trace system, a critical element of the $400 million Pakistan Raises Revenue project. Despite 81.98% of funds being disbursed, the system’s inefficacy is hindering progress in key Disbursement Linked Indicators (DLIs), threatening the country's revenue protection efforts.
Complicating matters further, the recent cancellation of the track and trace tender—despite an existing license already issued and operational to another company—has perplexed the industry. This decision has raised concerns about the FBR's decision-making process and the overall direction of the initiative. The move has left stakeholders questioning the path forward for a system that is crucial to curbing tax evasion and ensuring proper revenue collection.
The World Bank has underscored the need for immediate action to address these challenges. Effective implementation of the track and trace system could significantly enhance tax compliance and protect national revenues, but the FBR must first overcome the current obstacles. The future success of this initiative, and Pakistan's broader fiscal stability, depends on the FBR's ability to navigate these complexities and deliver a functional system.
