World Bank Boosts Pakistan's Economic Stability with $700 Million Initiative

The World Bank approved $700 million financing for Pakistan to stabilize its macroeconomic framework and improve service delivery. This initiative is part of a broader $1.35 billion program. It emphasizes fair tax systems, efficient resource use, and strengthening fiscal foundations to promote sustainable growth and improve public trust.

On Saturday, the World Bank sanctioned a $700 million financing package to Pakistan under a multi-year initiative targeting the country's macroeconomic stability and improvement of service delivery.

According to the World Bank, the funds will be distributed via its Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA), which could ultimately extend to $1.35 billion in total aid. The financing allocated includes $600 million for federal programs and $100 million towards a provincial program in Sindh, as reported by Dawn newspaper.

World Bank's country director for Pakistan, Bolormaa Amgaabazar, emphasized the necessity for Pakistan to mobilize domestic resources efficiently and transparently for sustainable growth. Meanwhile, lead country economist Tobias Akhtar Haque stressed that reinforcing Pakistan's fiscal foundations is crucial for restoring macroeconomic stability and strengthening institutions. The program aims to support economic reforms, bolster investment, and improve revenue and budget management across the nation.

(With inputs from agencies.)