World Bank approves $700 million financing to support Pakistan's economy

The World Bank has approved a $700 million financing package for Pakistan to support economic stability and enhance the delivery of public services. The funds are allocated under the Public Resources for Inclusive Development—Multiphase Programmatic Approach (PRID-MPA), a national initiative that could mobilize up to $1.35 billion in total support for federal and provincial reforms.

Focus on Domestic Revenue Mobilization

The program's primary objective is to help Pakistan increase its domestic revenue and ensure those resources are used effectively. Of the approved amount, $600 million is designated for federal programs, while $100 million is specifically earmarked for the provincial program in Sindh. This structure aims to strengthen fiscal management at both national and regional levels.

A Path to Sustainable Growth

World Bank Country Director for Pakistan, Bolormaa Amgaabazar, emphasized that mobilizing domestic resources is crucial for the country's development. "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," Amgaabazar stated. The program is designed to create a more robust fiscal framework that can fund essential services and infrastructure.

Broader Economic Context

This financial support comes as Pakistan continues to navigate economic challenges, including inflationary pressures and the need for structural reforms. The World Bank's backing is seen as a critical step in stabilizing the economy and building state capacity to generate and manage public finances more effectively, which is vital for long-term growth and poverty reduction.