World Bank Endorses $350 Million Funding Package for Pakistan

Islamabad: The World Bank (WB) has approved a USD 350 million package designated for financing Pakistan's budget. The specifics reveal, as per a press release, that the World Bank Executive Directors Board unanimously approved the USD 350 million financing for the Second Resilient Institutions for Sustainable Economy (RISE-II) program.

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Two years after it was first approved, this approval is explained by weakening economic fundamentals, the lack of an International Monetary Fund (IMF) aegis, and the unpredictability of the impending elections. The Washington-based lender waited to proceed with the board's approval until these details were clarified.

To restore macroeconomic balance and create the conditions for sustained growth, Najy   Benhassine, the Country Director of the World Bank for Pakistan, underlined the necessity of adopting fiscal and structural reforms as soon as possible. He emphasized that RISE-II aims to increase income, improve expenditure targeting, and encourage competition and investment. It builds upon previous reforms in tax, energy, and business climate.The granted loans by the World Bank are intended to boost regulatory frameworks that support growth and competitiveness, improve debt transparency and management, increase the size of the tax base while lowering tax policy distortions, and improve fiscal management.