Improved Resource Mobilization and Utilization Reform Program, Subprogram 2

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The proposed Improved Domestic Resource Mobilization Reform Program aligns with the Government of Pakistan's efforts to implement macroeconomic reforms, mobilize resources and promote public financial management (PFM) for economic growth. The core of the program is domestic resource mobilization (DRM). However, considering Pakistan's development context and the program's overarching goal of fiscal consolidation, DRM is interpreted more broadly, consistent with the 2015 Addis Ababa Action Agenda.The Subprogram 2 will be utilizing two financing options: (1) Conventional PBL. OCR loan of $300 million for sovereign budget support; and (2) Policy-based guarantee. $500 million partial credit guarantee (PCG) backed by a sovereign counter indemnity, to mobilize commercial financing of $1 billion.