Pakistan’s budgetary support reinstated by World Bank

ISLAMABAD: Under the Resilient Institutions for Sustainable Economy (RISE) programme, the World Bank (WB) has announced that Pakistan’s budgetary support will be reinstated.

A loan worth $500 million to help improve the fiscal management and harmonise sales tax across the country may also be approved by the WB Board of Directors. The considerations came after Pakistan qualified the budgetary support condition of having ample foreign exchange reserves to cover at least two-and-a-half months of import bill.

The foreign reserves in the State Bank of Pakistan (SBP) increased by $45 million to $8.44 billion, informed the central bank.

Sovereign bonds may also be launched by the government of Pakistan, in accordance with the Ministry of Finance. Presently, the Ministry of Finance has worked to align the policy matrix of the RISE loan package under the condition of the WB. The approval of the loan will be given after scrutinising the performance of the concerned authorities and related projects in the third quarter of this fiscal year.

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