ISLAMABAD (Dunya News) - The World Bank has approved $700 million in loans to Pakistan through a multi-year funding operation to support country’s economy.
According to details the financing will be processed through the World Bank's Public Resources for Inclusive Development - Multiphase Programmatic Approach (PRID-MPA), which will provide a total amount of up to $1.35 billion.
Of the approved funding, $600 million would be directed towards federal programs, and an additional $100 million would support the provincial program in the province of Sindh. The funding comes after the approval of a $47.9 million World Bank grant in August. The grant was meant to improve the delivery of primary education in the province of Punjab.
“The effort aims to mobilize finances efficiently and transparently to achieve concrete results for people. It will guarantee the supply of reliable funding for schools and clinics, just and progressive taxes, and better data to inform policies, without compromising priority public and climate investments," World Bank’s country director in Pakistan, Bolormaa Amgaabazar said.
Tobias Akhtar Haque, lead country economist, added that securing the fiscal foundation of Pakistan was critical for achieving stability. This credit facility will help achieve reforms that develop more fiscal space, further develop human capital and resilience for climate change, and improve revenue administration and budget implementation, among other reforms, to ensure that funds are channeled to the relevant services.
Some important federal sector reforms include tax policies/administrations, upscaled IFMIS/e-procurement systems, targeted subsidy schemes, and development of the National Statistical System. For Sindh, this will increase provincial finances as well as transparency in payments and informed decision-making.