By Staff Reporter
ISLAMABAD: The World Bank has approved $700 million in financing for Pakistan as part of a multi-year program designed to shore up the nation’s macroeconomic stability and improve public service delivery.
The funding falls under the bank’s Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), which could unlock as much as $1.35 billion in total over time. Of the initial tranche, $600 million is earmarked for federal programs, while $100 million will back initiatives in the southern province of Sindh. The results-based structure means disbursements will only occur once specific objectives are met, ensuring accountability in a country grappling with fiscal challenges.
“Pakistan’s path to inclusive, sustainable growth requires mobilizing more domestic resources and ensuring they are used efficiently and transparently to deliver results for people,” Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, said in a statement. She added that the program aims to deliver “tangible impacts—more predictable funding for schools and clinics, fairer tax systems, and stronger data for decision-making—while safeguarding priority social and climate investments and strengthening public trust.”
The approval comes amid broader efforts to address Pakistan’s economic vulnerabilities. In November, a joint report from the International Monetary Fund and World Bank, posted by Pakistan’s finance ministry, highlighted how fragmented regulation, opaque budgeting and political capture are stifling investment and eroding revenue collection. It also follows a $47.9 million World Bank grant in August aimed at enhancing primary education in Punjab, the country’s most populous province.”
Strengthening Pakistan’s fiscal foundations is essential to restoring macroeconomic stability, delivering results and strengthening institutions,” said Tobias Akhtar Haque, the World Bank’s lead country economist for Pakistan. He described the PRID-MPA as “a coherent nationwide approach to support reforms that expand fiscal space, bolster investments in human capital and climate resilience, and strengthen revenue administration, budget execution, and statistical systems.” “These reforms will ensure that resources reach the front line and deliver better outcomes for people across Pakistan with greater efficiency and accountability,” Haque added.
At the federal level, the program targets fairer domestic revenue generation, refined budget planning and execution, and enhanced data systems for informed policymaking. Specific measures include advancing tax policy and administration reforms, expanding the Integrated Financial Management Information System alongside its e-procurement platform, implementing targeted subsidy adjustments, and bolstering the national statistical framework under the Pakistan Bureau of Statistics.
In Sindh, the focus shifts to boosting provincial revenues, accelerating and clarifying payment processes, and expanding data-driven governance. Overall, the initiative seeks to channel more resources toward inclusive growth, such as equitable financing for primary health care facilities and increased school funding. The financing could stir regional sensitivities. In May, Reuters cited a senior Indian government source saying New Delhi would oppose World Bank funding for Pakistan, potentially complicating multilateral support amid ongoing geopolitical strains. Pakistan, which has relied on international bailouts to navigate recurrent balance-of-payments crises, faces pressure to enact structural reforms.
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