Financially strapped Pakistan is working hard to ensure the inflow of foreign reserves through friendly countries and international financial institutions in the form of loans and investments; the World Bank reportedly emphasized the need for cooperative efforts to ensure the disbursement of $2 billion during the current fiscal year.
The ability of the federal and provincial governments to deliver on the agreed points has been made a condition of the amount to be released in program and project loans, according to sources.
By putting in place efficient institutions and mechanisms for intergovernmental coordination, it aims to increase the credibility of fiscal policy. It also improves debt transparency and management, increases the tax base, lessens tax policy distortions, and increases the financial viability of the energy sector by resolving circular debt.
The World Bank's ongoing portfolio in Pakistan was evaluated overall at a meeting between Country Director Najy Benhassine and Caretaker Finance Minister Dr. Shamshad Akhtar, according to the Economic Affairs Division (EAD). During the meeting, a number of other solutions were investigated to increase cooperation in important sectors and promote national economic growth.
Dr. Akhtar reaffirmed the importance of the bank's development cooperation with Pakistan. She commended the administration of the World Bank, particularly the country team in Islamabad, for its efforts to advance Pakistan's economy.
Benhassine stated that the World Bank Management was working with Pakistan's Ministry of Finance, Revenue, Economic Affairs, and Privatisation to improve the ongoing portfolio's implementation performance as well as increase the amount of foreign resources being disbursed.
He stated that the combined efforts aim to make roughly $2 billion in payments during the current fiscal year 2023–2024.
The minister discussed the government's reform plan and ongoing initiatives to stabilize the economy. She also stated that Pakistan's government is aware that implementing reforms in important areas, notably the energy industry, will enable Pakistan to realize its full potential for growth.