WB asks Pakistan to work jointly to unlock $2bn disbursement

ISLAMABAD: The World Bank on Saturday asked Pakistan to undertake joint efforts to ensure disbursements of $2 billion in the form of programme and project loans during the current fiscal year.

Without materialising all deliverables under the pre-requisite conditions by federal and provincial governments through effective implementations of agreed deliverable indicators, the disbursement of loans of $2 billion would not materialise. According to an official announcement made by the Economic Affairs Division (EAD) on Saturday, the country director of the World Bank called on the Minister for Finance, Revenue, Economic Affairs, and Privatisation, Dr. Shamshad Akhtar.

They discussed and reviewed the overall performance of the World Bank’s ongoing portfolio in Pakistan, and different options were discussed to further expand collaboration in different priority areas to help boost economic activities in the country.

Dr. Shamshad Akhtar, while welcoming the World Bank team, reiterated that Pakistan values its development partnership with the bank. She appreciated the efforts of World Bank management, especially the country team in Islamabad, in the economic development of Pakistan.

The Country Director of the World Bank, Najy Binhassine, while briefing the finance minister on the ongoing portfolio, indicated that the World Bank Management, in collaboration with the Ministry of Finance, Revenue, Economic Affairs, and Privatisation, is making efforts to not only improve the implementation performance of the ongoing portfolio but also to maximise the volume of disbursement of foreign resources. He indicated that the joint efforts are targeting disbursements of around US$2 billion during the current financial year, i.e., 2023-24.

The minister shared the reform agenda of the government and the ongoing efforts to stabilize the economy. She also informed that the Government of Pakistan is cognizant of the fact that implementation of reforms in the priority sectors, particularly in the energy sector, will allow Pakistan to unleash its growth potential, therefore introducing policy reforms in this sector will remain the prime focus of the government of Pakistan.

The country director briefed the minister on the progress under the RISE-II Development Policy Financing Programme, which has recently been negotiated by the World Bank with EAD. The minister commended the immediate support of the World Bank during the 2022 floods. However, considering the enormous post-flood rehabilitation and reconstruction needs of the country, the minister asked the country director for extending further World Bank support to better cope with the emergency needs of the country.