The World Bank has sanctioned $350 million in funding for institutional reforms in Pakistan, as reported by a private news channel.
This financial support, termed as the Second Resilient Institutions for Sustainable Economy (RISE-II) Operation, aims to fortify fiscal management and foster competitiveness for long-term, inclusive economic growth.
Najy Benhassine, the World Bank's Country Director for Pakistan, highlighted the urgency for fiscal and structural reforms in Pakistan, stating that these reforms are crucial to restoring macroeconomic stability and establishing the groundwork for sustainable growth. He noted that RISE-II builds upon prior tax, energy, and business climate reforms, designed to boost revenues, enhance expenditure targeting, and spur competition and investment.
The operation focuses on enhancing fiscal management by refining fiscal policy coordination, augmenting debt transparency and management, reforming property taxation, and bolstering the power sector's financial viability.
Additionally, it aims to bolster growth and competitiveness by lowering the cost associated with tax compliance, improving financial sector transparency, encouraging digital payments, and advancing exports through reduced import tariffs.
Najy Benhassine emphasized that this financing will play a vital role in reducing energy sector losses in the country.
