Dhaka.Pakistan has received great relief at the international level amidst serious economic crisis. The World Bank has approved financial assistance of $ 700 million (about Rs 5,800 crore) aimed at strengthening Pakistan’s macroeconomic stability and public services. This assistance is being given at a time when Pakistan is struggling with huge debt, rising inflation, shortage of foreign exchange reserves and economic instability. In the same sequence, the International Monetary Fund (IMF) has also approved giving loan to Pakistan, which is expected to provide some support to the country’s staggering economy.
This financial assistance from the World Bank will be provided under the Public Resources for Inclusive Development – Multi-Phase Programmatic Approach. Under this program, Pakistan can get a total funding of up to 1.35 billion dollars. The currently approved amount of $700 million is part of this long-term program, which aims to accelerate economic reforms in Pakistan and make public sector services more effective.
Of this approved amount, $600 million has been earmarked for federal level programs. Through these programmes, emphasis will be laid on improving the government’s revenue management, budget system, financial transparency and quality of public services. Meanwhile, $100 million has been allocated for a special program for Sindh province, which aims to strengthen economic governance at the provincial level and improve civil services.
The World Bank believes that this assistance will help Pakistan move towards economic stability and provide the government with the opportunity to implement structural reforms. According to the bank, the pace of development in the country can be brought back on track with better financial management and efficient use of resources.
On the other hand, approval of loan by IMF is also considered important for Pakistan. Under IMF conditions, Pakistan will have to take tough steps like tax reforms, subsidy cuts and financial discipline. However, the government claims that these reforms will strengthen the economy in the long run. Experts say that this assistance from the World Bank and IMF can provide short-term relief, but for a permanent solution, Pakistan will have to work seriously on comprehensive economic reforms, increasing exports and improving the investment environment.
