Pakistan needs an estimated 10 trillion in financing for development projects over the next five years. Sources of finance include international organizations like the OECD as well as domestic taxes and private finance. To access these funds, Pakistan must improve tax collection, expand its tax base to include digital economies, fight tax evasion, and increase voluntary tax compliance. It also needs to work with multilateral development banks based on six principles: alignment with climate goals, adaptation and resilience, policy support, reporting, and aligning internal activities.

1. Unlocking Investment and Finance in
Emerging Markets and Developing
Economies (EMEDs)
Digital Artifact By: Mazhar Mahmood Jatoi
Financing for Development 1

2. Development Financing Strategy for
Pakistan 2019 – 2024
2Financing for Development

3. Pakistan’s Economy Statistics Fascial
Year 2018 - 19
Growth Rate: 3.29%
Total Investments % of GDP: 15.4%
Fixed Investments % of GDP: 13.8%
Public and Private Investment: 4%
Total Revenue % of GDP: 14.9%
Total Expenditure % of GDP: 20.5%
Total Development Budget: 1,062B
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4. Estimated financing needs for the development sector
of Pakistan for next five years
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Estimated financing Needs for Pakistan’s development
sector for next five years is about 10,000 Billions

5. Financing for Development 5
Sources of finance are available
International Sources
Official Development Assistant (ODA)
Organization for Economic Co-operation and Development (OECD)
International Agencies
Development Banks
Foreign Direct Investment
Domestic Source
Taxes
Public and Private Finance

6. To Access Financial Resources Pakistan Needs to:
• Improve tax policies and administrations’ ability to
collect revenues.
• Equip revenue administrations with knowledge and
tools to raise revenues in hard-to-tax sectors
and reduce the size of the shadow economy.
• Institute transfer pricing arrangements and
mechanisms for resolving disputes between taxpayers
and revenue administrations that secure a fair share
of taxes on profits.
• Expand the tax net to include the digital economy,
e.g., items sold on foreign marketplaces.
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7. To Access Financial Resources Pakistan Needs to:
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• Fight tax evasion through early detection, smarter auditing, and
effective investigation and prosecution that hold evaders
accountable, especially among the richest taxpayers, and thus
create public confidence in the tax system.
• Increase taxpayers’ voluntary compliance with tax laws through
outreach and education to increase collection and address
informality
• Close wasteful loop holes and reduce unwarranted tax
incentives for investors
• Promote knowledge exchange on country experiences with
DRM reform
• Making it easier to pay taxes improves competitiveness.
• There is a need to ensure that the tax system is fair and
equitable.

8. Pakistan will have to work with multilateral development
banks to address barriers to accessing these sources of finance
.
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9. Relations with MDBs will be based on six building blocks
Alignment with mitigation goals:
Relations will be consistent on development
pathways and compatible with the overall
climate change mitigation objectives.
In line with Principle 2 of the “Mainstreaming
Principles”, we will assess our operations
against transition risks and opportunities
related to climate change.
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10. Relations with MDBs will be based on six building blocks
Adaptation and climate-resilient operations:
We will be vigorous in managing physical
climate change risks, in a manner consistent
with climate-resilient development, and in
identifying opportunities to make our
operations more climate-resilient. In addition,
we will seek to support a significant increase
in our clients’ and their communities’ ability
to adapt to the adverse impacts of climate
change.
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11. Relations with MDBs will be based on six building blocks
Engagement and policy development support:
We will build on existing efforts to support the
NDCs’ revision cycle and develop services to put
in place long-term strategies and accelerate the
transition to low-emissions and climate-resilient
development pathways. In developing these new
services, we will ensure consistency with the
SDGs and establish collaborative partnerships
with other institutions and private sector actors
while scaling-up outreach and knowledge-sharing
initiatives
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12. Relations with MDBs will be based on six building blocks
Reporting:
Building on the joint efforts on climate finance
tracking and collaboration on mitigation and
adaptation issues, we will further develop tools
and methods for characterizing, monitoring and
reporting on the results of our Paris-alignment
activities. Where possible, we will collaborate to
harmonize our respective approaches.
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13. Relations with MDBs will be based on six building blocks
Align internal activities:
We will progressively ensure that our
internal operations, including facilities and
other internal policies, are also in line with
the objectives of the Paris Agreement
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14. Financing for Development 14