World Bank urges Pakistan for joint efforts to unlock $2bn funds

Islamabad: The World Bank has emphasized the need of coordinated efforts to guarantee that Pakistan receives $2 billion in program and project loans during the current fiscal year.

The federal and provincial governments must successfully complete the deliverables listed in the international financial institution's KPIs in order for the money to be released. Therefore, the $2 billion disbursement will be delayed if these requirements are not met.

The World Bank Country Director Najy Benhassine met with the acting Finance Minister Dr. Shamshad Akhtar, according to a statement released by the Economic Affairs Division (EAD).

The two evaluated the overall effectiveness of the ongoing World Bank portfolio in Pakistan during their meeting. To increase cooperation in important areas and promote national economic growth, a number of other solutions were investigated.

Dr. Akhtar highlighted that Pakistan appreciates its development collaboration with the bank while extending a warm welcome to the World Bank team. She commended the management of the World Bank, particularly the country team in Islamabad, for its efforts to advance Pakistan's economy.

The World Bank Management, in coordination with Pakistan's Ministry of Finance, Revenue, Economic Affairs, and Privatization, is working to improve the ongoing portfolio's implementation performance as well as to increase the amount of foreign resources disbursed, according to Benhassine, who briefed the finance minister on the project.

He stated that the combined efforts aim to make roughly $2 billion in payments during the current fiscal year 2023–2024.

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, will allow Pakistan to unleash its growth potential, therefore introducing policy reforms in this sector will remain the prime focus of the government of Pakistan.

The country director briefed the minister on the progress under the RISE-II Development Policy Financing Programme, which has recently been negotiated by the World Bank with EAD.

The minister commended the immediate support of the World Bank during the 2022 floods. However, considering the enormous post-flood rehabilitation and reconstruction needs of the country, the minister asked the country director to extend World Bank support further to better cope with the emergency needs of the country.