Resilient Institutions for Sustainable Economy

closed

Closed

The operation for a Loan and Credit of US500 million dollars focuses on improving fiscal management and fostering growth and competitiveness. RISE will assist the government in improving the intergovernmental fiscal architecture to enable the country to improve its fiscal position through the establishment of the Macro-Fiscal Policy Unit, the preparation of budgets that are aligned with the Medium Term Fiscal Framework, enhanced debt transparency and management, and a broadened tax base. The operation will support measures to enhance the regulatory framework to promote competitiveness and growth through the harmonization of the general sales tax, increased use of digital financial services, enhanced integrity in the financial sector, and a reduction in the anti-export bias of the national trade tariff policy. The operation also supports foundational reforms for improving the financial viability of the power sector by setting out a strategy to address the sector’s circular debt as well as policies to facilitate the development of low carbon energy resources. The operation will also support measures to improve the regulatory environment to enable the country to become more competitive and thereby boost private investment. Reforms supported by this operation are also important for the country to break out of the boom-and-bust macroeconomic cycles and get on a sustainable growth path to end extreme poverty and boost prosperity of the people of Pakistan. These reforms are critical for stronger and faster recovery as the pandemic subsides. The operation is consistent with the government’s COVID-19 crisis response program, which aims at scaling up spending on health and social protection, including through the fiscal space created by the G20 Debt Service Suspension Initiative.

World Bank Group

Project

Power Generation (CCGT), Government