World Bank approves $350 million financing for Pakistan

The World Bank has approved $350 million in financing for Pakistan as part of the Second Resilient Institutions for Sustainable Economy (RISE-II) Operation. The funds aim to bolster fiscal management and promote competitiveness for sustainable economic growth.

This initiative builds on earlier reforms in taxation, energy, and the business climate. The RISE-II Operation focuses on improving fiscal coordination, debt transparency, property taxation, and the financial viability of the power sector.

It also aims to reduce tax compliance costs, enhance financial sector transparency, encourage digital payments, and support exports by lowering import tariffs. The World Bank emphasizes the urgency of fiscal and structural reforms in Pakistan to restore macroeconomic balance.

The successful implementation of RISE-II provides an opportunity for Pakistan to address long-standing economic distortions, but failure to do so may risk economic cycles, warns Derek H. C. Chen, Task Team Leader of the operation.

A recent World Bank report projected a decline in remittance flows to Pakistan, citing economic challenges and a shift of remittances from formal to informal channels.