The World Bank and the Punjab Revenue Authority (PRA) have reached a significant agreement to digitalize the tax collection system in Punjab, Pakistan. This development was confirmed during a meeting held on January 31, 2026, between a World Bank delegation and PRA Chairman Moazzam Iqbal Sipra.
The initiative aims to transition the province toward a cashless economy, enhancing digital payments within the services sector. Consumers in the hotel and restaurant industries are set to benefit from a tax relief of up to 11% on payments made via debit and credit cards. This move is part of a broader strategy to curb tax evasion and improve transparency in financial transactions.
The PRA’s digital system will be integrated with the Punjab Information Technology Board’s database, ensuring seamless operations and data management. The World Bank has expressed strong support for this reform agenda, committing to practical cooperation in implementing the agreed measures.
This collaboration marks a pivotal shift in Punjab’s economic landscape, setting the stage for future advancements in digital governance. The successful implementation of this plan could serve as a model for other regions, potentially leading to further meetings and agreements to expand the initiative’s reach.
Published in SouthAsianDesk, January 31st, 2026
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