Pakistan: Building Resilience with Countercyclical Expenditures (BRACE) Program

approved

BRACE is proposed to be supported under the COVID-19 Crisis Recovery Facility (the Facility) of the Bank and co-financed with Asian Development Bank (ADB) as countercyclical assistance for prioritized expenditures under the ADB's Countercyclical Support Facility. The Program constitutes one element of Pakistan's response to and recovery from the combined adverse impacts of COVID‑19 pandemic, conflict and flood disaster, focusing on economic revitalization and crucial health and social sector spending. The Program, co-financed with ADB, will finance expenditure for strengthening social safety net and fiscal measures to support government's response to deal with the triple crises. Specifically, it will support measures for: Social Protection: This will increase the number of beneficiaries for cash transfer under the national social protection program from 8 million to 9 million households, and fuel subsidies for vulnerable. Food Security Measures: This component will provide grants for food security including food transportation and subsidization for urban poor, subsidy for fertilizers, subsidy on imported urea; and agriculture relief initiative (for seeds and tractors) Support for Businesses: This component will support Kamyab Jawan Program (a youth vocational training, entrepreneurship, and employment initiative) as well as provide support for exporters.