World Bank approves $1.02 bln to support Pak reforms, disaster resilience

ISLAMABAD: The World Bank has approved financing worth $1.02 billion using three different financing instruments to support the deepening of Pakistan’s economic reforms and to strengthen the capacity of Sindh province to deal with natural disasters. The Competitiveness and Growth Development Policy Financing (CGDPF) would support the Government of Pakistan’s efforts to encourage economic growth and

investment for reducing poverty and building shared prosperity,  Illango Patchamuthu, World Bank’s Country Director for Pakistan, said in a statement here Wednesday. Illango Patchamuthu,”The Government of Pakistan has made significant progress in stabilizing the economy, initiating reforms for revenue mobilization and drawing in the private sector for spurring growth.” He said it was now stepping up efforts through deeper reforms and an accelerated pace of implementation. This would improve the competitiveness of the economy, which in turn would create more and better jobs, lifting millions out of poverty. The CGDPF, he said, would provide $920 million in budget support to improve the business environment and strengthen fiscal management. The financing combines a credit of $500 million and a World Bank guarantee of $420 million, he added. “The operation will support reforms that contribute towards accelerating growth and fostering an inclusive growth pattern”, said Enrique Blanco Armas, Task Team Leader of the Project. “Reforms supported will improve the business environment and contribute to the development of the financial sector and reforms of state owned enterprises. The operation also supports efforts for improved fiscal management through increased revenues, better coordination of debt management and making public spending more pro-poor”. The World Bank guarantee is an innovative instrument that will support Pakistan’s access to international markets to meet its budgetary financing needs.