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To handle the deteriorating economic condition of Pakistan, the World Bank has approved funding of 700 million dollars. This help is being given to strengthen the country’s macroeconomic stability and public services. With this help, it is expected that there will be improvement in education, health and tax system.
New Delhi. The World Bank has taken a big step to handle the weakening economy of Pakistan. The bank has approved funding of $700 million with the aim of strengthening the country’s macroeconomic stability and public services. This assistance is being given under a multi-year plan, which is expected to help Pakistan in financial reforms and better service delivery in the long run.
Funding will be available under PRID-MPA scheme
According to the World Bank, this amount will be released under Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA). Total funding under this program can reach $1.35 billion. According to media reports, this scheme focuses on better utilization of government resources and promoting transparency at both the central and provincial levels. Its objective is to ensure that the benefits of development related schemes reach the common people directly.
Center and Sindh province will get a bigger share
Of the $700 million approved, $600 million has been earmarked for federal programs. And $100 million will be given to support a special program running in Sindh province. Earlier in the month of August, the World Bank had also given a grant of 47.9 million dollars for the improvement of primary education in Punjab. It is clear from this that the bank is continuously emphasizing on strengthening education and basic services.
Emphasis on inclusive development: World Bank
Bolorama Amgabazar, Pakistan Country Director of the World Bank, said that for Pakistan to move forward on the path of inclusive and sustainable development, it is necessary to increase domestic resources and utilize them properly and transparently. He said that through this program, the federal government and the Sindh government will work together to create stable funding for schools and clinics, a more equitable tax system and better data systems to strengthen people’s trust.
The aim is to strengthen the financial structure
World Bank Lead Country Economist Tobias Akhtar Haq said that strengthening Pakistan’s financial foundation is extremely important to restore macroeconomic stability. Under PRID-MPA, reforms will be implemented so that the government has more resources for spending, increases investment in human capital and climate adaptation, and improves the tax and budget system. This will increase both the capacity and accountability of government institutions.
Direct impact on health, education and data systems
The focus of this program will be on increasing domestic revenue in a more equitable manner, improving budget planning and implementation, and strengthening data systems. With this, primary health centers and schools will be able to get more and timely funding. The World Bank believes that these reforms will direct resources to the right place and lead to better outcomes for the common people.
IMF-World Bank report also expressed concern
It is noteworthy that in an IMF-World Bank report released in November, concern was expressed about Pakistan’s economic challenges. According to the report, fragmented regulations, unclear budget processes and political interference are hindering investment and weakening revenues. In such a situation, this new funding from the World Bank is being considered an important step towards economic reforms for Pakistan.
