The UK’s tax authority will be teaching its Pakistani equivalent how to widen its net and increase tax revenues.
The UK’s HMRC will be providing “expert assistance through high-level dialogue” with Pakistan’s Federal Board of Revenue to help it bring tax levels up to 15 per cent of GDP and widen its tax net to the wealthy.
International development secretary Justine Greening said that without these measures, “Pakistan will never be able to invest in a more prosperous future”.
Greening is under pressure to demonstrate that the aid programme is tackling genuine need, and she says this could help reduce the amount Britain needs to send to the country. Pakistan is currently the biggest recipient of aid from Britian, and will receive £412m this financial year and £446 in 2014/15.