The World Bank on Thursday approved $800 million in financing for two major programmes in Pakistan.
The Pakistan Programme for Affordable and Clean Energy (PACE) and a programme called Second Securing Human Investments to Foster Transformation (SHIFT-II) will be funded with the cash influx.
Secretary for Ministry of Economic Affairs Noor Ahmed and the World Bank’s Acting Country Director Melinda Good signed the loan agreements worth $800 million on behalf of their respective sides.
Out of the total, $400 million have been set towards the SHIFT-II Development Policy Financing.
The development objectives SHIFT-II programme is to strengthen Civil Registration and Vital Statistics, health and education systems essential for Human Capital (HC) accumulation. The programme will also recognise the contribution of women to economic productivity and improve national safety nets to respond to shocks in a more efficient manner.
The other 400m will go towards PACE Development Policy Financing. The development objective of this programme is to reduce circular debt flow by reducing power generation costs, de-carbonising the energy mix, improving efficiency in distribution and retargeting electricity subsidies.
The World Bank will disburse $400 million immediately while disbursement of another US$ 400 million will follow in the coming days.
This financial support of $800 million under these two programmes will also help in improving the balance of payment, strengthening foreign exchange reserves, according to a press statement.
Director Good appreciated the reforms undertaken by the Government of Pakistan in the areas of the energy sector and human capital development in difficult times.
She reminded Pakistan of the World Bank’s commitment to continue to work together with the Government of Pakistan in the critical areas of the economy.
