As the international lender certified that Pakistan has fulfilled all requirements for the Resilient Institution for Sustainable Economy (RISE-II) initiative, Pakistan is expected to receive a $450 million loan.
The $450 million loan is anticipated to be approved by the World Bank’s board of directors in November, according to The News on Wednesday.
“Discussions are also underway whereby the Asian Infrastructure Investment Bank (AIIB) will grant approval for co-financing of $450 million, so total funding of $900 million will be provided to Pakistan. All attached conditions have been fulfilled,” top officials of the Finance Ministry confirmed on Tuesday.
Pakistan anticipates receiving $1.4 billion from the World Bank and AIIB in the next weeks, at a time when the nation is facing a shortage of dollars. Despite the renewal of the International Monetary Fund’s (IMF) program providing $1 billion as well as $1.5 billion from the ADB, the State Bank of Pakistan’s (SBP) foreign exchange reserves stand at $8.9 billion.
The regional director for infrastructure for South Asia at the World Bank, Guangzhe Chen, met with finance minister Ishaq Dar on Tuesday at the finance division, according to a statement from the ministry of finance.
The Central Development Working Party (CDWP) of the Planning Commission approved the project, enabling the fulfillment of a further requirement to obtain a $500 million loan from the AIIB. The AIIB is also considering providing an additional $500 million as co-financing of the ADB’s Building Resilience with Active Countercyclical Expenditure (BRACE) program.
The finance minister greeted Guangzhe and emphasized Pakistan’s current economic outlook. He informed the delegation of the numerous policy initiatives the government is pursuing to guarantee sustainable and inclusive economic growth and development by improving business accessibility, promoting exports, and supporting diverse economic sectors.
Guangzhe commended the Pakistani government for completing the RISE fiscal reform initiative effectively. He informed the finance minister about the country’s other World Bank programs that are being carried out in accordance with the goals of the Pakistani government. He emphasized the World Bank’s assistance with relief and recovery efforts in flood-affected communities.
Under the RISE-I programme of $500 million for Pakistan, the World Bank had focused on improving fiscal management and fostering growth and competitiveness. The RISE assisted the government in improving the intergovernmental fiscal architecture to enable the country to improve its fiscal position.
