Islamabad, Dec 20 (PTI) The World Bank has approved USD 700 million in financing for Pakistan under a multi-year initiative to support the country’s macroeconomic stability and service delivery, media reported on Saturday.
According to the lender, the funds will be released under the bank’s Public Access for Public Resources for Inclusive Development — Multi-Phase Programmatic Approach (PRID-MPA), which could provide total financing of up to $1.35 billion, Dawn newspaper reported.
Of this amount, US$ 600 million will go to federal programs and US$ 100 million to support the provincial program in Sindh.
The approval follows a $47.9 million World Bank grant in August to improve basic education in Punjab.
In a separate statement issued by the lender, Bolormaa Amgaabazar, World Bank country director for Pakistan, was quoted as saying, “Pakistan’s path to inclusive and sustainable growth requires mobilizing more domestic resources and ensuring their efficient and transparent use to deliver results for the people.”
She said that through the MPA, the bank is working with the federal and Sindh governments to “deliver tangible impacts – more predictable funding for schools and clinics, fairer tax systems and stronger data for decision-making – while protecting priority social and climate investments and strengthening public confidence”.
Tobias Akhtar Haque, the World Bank’s chief economist for Pakistan, said strengthening Pakistan’s fiscal fundamentals was “essential to restoring macroeconomic stability, delivering results and strengthening institutions.”
“Through PRID-MPA, we are launching a coherent country-wide approach to support reforms that expand fiscal space, strengthen investment in human capital and climate resilience, and strengthen revenue management, budget execution and statistical systems,” he said.
“These reforms will ensure that resources are brought to the front lines and deliver better outcomes for people across Pakistan with greater efficiency and accountability,” he added.
According to the statement, the federal component will focus on raising domestic revenue more equitably, improving budget planning and execution, and strengthening data systems for evidence-based decisions.
The program will directly support the increase of public resources for inclusive development, including fairer and more responsive funding for basic health facilities and more funding for schools, she added.
In November, an IMF-World Bank report uploaded by the finance ministry said the country’s fragmented regulation, opaque budgeting and political capture were limiting investment and weakening revenue.
