World Bank’s Economic Assistance

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Recently Pakistan requested a loan of $800 million dollars for two of its programmes. To improve its position Pakistan was able to meet the conditions of WB of enhancing monthly cash stipend of the Benazir Income Support Programme.

 

Therefore, on 29 June in a press release WB agreed on funding Pakistan’s two economic programmes. The programmes are Programme for Affordable and Clean Energy (PACE) and the Second Securing Human Investments to Foster Transformation (SHIFT II). Upon the approval, the WB country director for Pakistan said that these programmes will help in improving the sustainable development.

 

With the rise in pollution and carbon emissions the Programme for Affordable and Clean Energy focuses on improving the financial viability of the power sector and a reduction in carbon emissions. The PACE is catering to the reduction in power generation costs, better targeting of subsidies and tariffs for consumers, and improving efficiencies in electricity distribution with the participation of the private sector. In this regard, WB task team leader Rikard Liden, said, “the power sector reforms were critical to resolving the country’s fiscal challenges”.

 

The second half of the allocated budget is for the Second Securing Human Investments to Foster Transformation (SHIFT II). The programme will focus on the improvement of health and education services in Pakistan. Further, it will increase the income generation opportunities for the poor, and promote inclusive economic growth.

 

“The programme supports reforms to encourage women’s participation in the economy by improving working conditions and empowering those in the informal sector. It supports the enhancement of national safety nets programmes and better targeting to protect the most vulnerable, building resilience to shocks like the Covid-19 pandemic,” the press release said. Therefore, the aim of the programme is to increase sustainable development in Pakistan.

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