World Bank approves $350mln in financing for institutional reforms

ISLAMABAD: The World Bank (WB) has approved $350 million in financing for the implementation of institutional reforms in Pakistan, ARY News reported on Wednesday.

The World Bank’s Board of Executive Directors approved $350 million in financing for the Second Resilient Institutions for Sustainable Economy (RISE-II) Operation, which aims to strengthen fiscal management and promote competitiveness for sustained and inclusive economic growth.

Najy Benhassine, the World Bank Country Director for Pakistan, in a statement, said, “Pakistan needs urgent fiscal and structural reforms to restore macroeconomic balance and lay the foundations for sustainable growth.”

“RISE-II completes a first phase of tax, energy, and business climate reforms geared to raising additional revenues, improving the targeting of expenditures, and stimulating competition and investment,” he added.

The operation contributes to better fiscal management by improving fiscal policy coordination, enhancing debt transparency and management, strengthening the taxation of property, and improving the financial viability of the power sector.

The operation also aims to foster growth and competitiveness by reducing the cost of tax compliance, improving financial sector transparency, encouraging the use of digital payments, and promoting exports by lowering import tariffs.

The World Bank Country Director for Pakistan, Najy Benhassine, further emphasised that the financing will help reduce losses in the energy sector in the country.