World Bank and Pakistan discuss how to get $2bn funds released
Business
Country Director Najy Benhassine meets Dr Shamshad Akhtar
ISLAMABAD (Web Desk) – As cash-starved Pakistan is striving hard to ensure foreign reserve inflow through international financial institutions and friendly nations in the shape of loans and investment, the World Bank has reportedly stressed the need for collaborative efforts to ensure the disbursement of $2 billion during the current fiscal year.
The amount to be disbursed in programme and project loans, according to sources, has been made conditional to the ability of federal and provincial governments to deliver upon the agreed points.
It includes improving credibility of fiscal policy by establishing effective institutions and intergovernmental coordination mechanisms, enhancing debt transparency and management, broadening the tax base and reducing distortions in tax policy, and improving the financial viability of the energy sector through resolution of circular debt.
According to the Economic Affairs Division (EAD), World Bank Country Director Najy Benhassine held a meeting with Caretaker Finance Minister Dr Shamshad Akhtar, during which they assessed the overall performance of the World Bank's ongoing portfolio in Pakistan. Various other options were explored to expand collaboration in priority areas, with the aim to stimulate economic growth within the country.
Dr Akhtar reiterated that Pakistan valued its development partnership with the bank. She appreciated the efforts of World Bank management, especially the country team in Islamabad, in the economic development of Pakistan.
Benhassine indicated that the World Bank Management, in collaboration with Pakistan's Ministry of Finance, Revenue, Economic Affairs, and Privatisation, was making efforts to not only improve the implementation performance of the ongoing portfolio but also to maximise the volume of disbursement of foreign resources.
He indicated that the joint efforts are targeting disbursements of around $2 billion during the current financial year 2023-24.
The minister shared the reform agenda of the government and the ongoing efforts to stabilise the economy. She also informed that the Government of Pakistan is cognizant of the fact that implementation of reforms in the priority sectors, particularly in the energy sector, woul allow Pakistan to unleash its growth potential. Therefore, she added, introducing policy reforms in this sector would remain the prime focus.
