Pakistan calls for enhanced support to overcome socioe-conomic challenges

ISLAMABAD: Pakistan on Monday called for enhanced support of international community to fight against the socioeconomic challenges in time of pandemic during a World Bank Group meeting on human capital ministerial conclave.

Representing Pakistan at the virtual meeting, Minister for Economic Affairs Khusro Bakhtyar said additional financial resources would help to create fiscal space to invest more in human capital.

Pakistan is one of the first early adopters of human capital project, said Bakhtyar. Foreign countries and financial institutions have poured in millions of dollars as financial assistances to Pakistan to help the country offset the impact of the pandemic lockdown on the economy and its health implications.

The World Bank approved $600 million in financing from the International Development Association for the crisis-resilient social protection program that will support the country to expand the national poverty alleviation program to protect vulnerable households and increase resilience to economic shocks such as the COVID-19 pandemic.

Asian Development Bank reallocated $30 million from the national disaster risk management fund (NDRMF) to support the country’s pandemic response. The NDRMF board of directors allocated an additional $20 million from earned interest from the endowment fund capitalised under the project.

ADB approved a $300 million emergency assistance loan to solidify the country’s public health response to the pandemic and help reboot economic activities. The government of Norway has also contributed a $5.28 million grant to be administered through ADB to strengthen the emergency response system.

In June, the bank approved a $500 million budget support loan to help deliver social protection programs to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs. The World Bank’s spring meeting includes ministers and government officials from 80 countries to share views/narratives that will improve the human capital of the world after pandemic.

Economic Affairs Minister said the country’s initial response to combat COVID19 crisis remained strong and robust and well recognised by the international community. The government put up an economic stimulus package of $8 billion which helped to save lives and livelihoods, as result of this, the economy contracted by only 0.4 percent as compared to global contraction of 3.5 percent.

The government launched 10-billion tree tsunami project, eco-system restoration initiatives, recharge Pakistan, and clean and green Pakistan movement to curb climate change and its environmental impacts.