Pakistan Competitiveness and Growth Development Policy Credit

closed

The development objective of the Competitiveness and Growth Development Policy Financing Project for Pakistan will be structured around two development objectives and pillars, (i) improving the business environment, and (ii) enhancing fiscal management through improving revenue management and making public spending more pro-poor. The operation contributes to the government’s strategy for accelerating economic growth, pursuing fiscal consolidation, and increasing investment. A stand-alone operation is being presented to support a selected number of discrete reforms that the Government of Pakistan has implemented before entering the electoral cycle in 2017. To accelerate growth and maintain macroeconomic stability the Government of Pakistan is stepping up reform efforts, which will be supported by the operation. The operation will support the reform effort through both policy engagement and the choice of instrument - combining the International Development Association (IDA) credit with an International Bank for Reconstruction and Development (IBRD) policy-based guarantee (PBG). The program builds on the success of the previous fiscally sustainable and inclusive growth (FSIG) series and the ongoing International Monetary Fund (IMF) program by supporting reforms that will contribute to efforts to accelerate growth and foster an inclusive growth pattern.