The World Bank has approved $350 million to boost Pakistan’s development of its budget and economic competitiveness

The World Bank announced in a statement on Wednesday that the Board of Executive Directors has approved $350 million in support for Pakistan in an effort to enhance fiscal management and promote competitiveness for the country’s inclusive and sustained economic growth.

We launched the first RISE-I programme two years ago. In December 2022, the Second Resilient Institutions for Sustainable Economy (RISE-II) Operation got underway.

A top World Bank official repeatedly emphasised during the gathering that Pakistan needs to make significant adjustments in order to accelerate its economic development.

According to Najy Benhassine, the country director of the bank for Pakistan, Pakistan “needs urgent fiscal and structural reforms to restore macroeconomic balance and lay the foundations for sustainable growth.” “RISE-II completes the first phase of business climate, energy, and tax reforms aimed at improving the targeting of expenditures, boosting investment and competition, and raising additional revenues.”

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According to a World Bank statement, the RISE-II operation helps fiscal policy coordination, improves debt management and transparency, increases property taxation, and strengthens the power industry’s financial sustainability.

The operation also aims to improve growth and competitiveness by reducing import tariffs, promoting the use of digital payments, improving financial sector transparency, lowering the cost of tax compliance, and increasing exports.
“After the upcoming general elections, Pakistan has the opportunity to tackle long-standing structural distortions in its economy based on the foundations laid through RISE-II and parallel support by other IFIs [international financial institutions],” stated Derek H. C. Chen, the task chairman of the mission. “We run the risk of returning to stop-and-go economic cycles if we miss this opportunity.”

Pakistan and the World Bank have had a lengthy and varied partnership spanning several decades, with a focus on a variety of development challenges and strategic concerns.

The bank has also published a series of policy papers in recent years to further the public conversation on the reforms crucial to the country’s economic future as part of its engagement and outreach strategy.