Pakistan, World Bank sign loan agreement worth $918 million

Published June 18, 2019
Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh oversees the signing of the agreement. — Photo provided by Economic Division
Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh oversees the signing of the agreement. — Photo provided by Economic Division

Pakistan on Tuesday signed three loan agreements worth a total of $918 million with the World Bank.

Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh witnessed the signing of the agreement between Country Director World Bank Patchamuthu Illangovan and Economic Affairs Division Secretary Noor Ahmed. The representatives of the Higher Education Commission (HEC) and Government of Khyber Pakhtunkhwa signed their respective project agreements.

After the agreements were signed, the World Bank’s country director held a meeting with the Dr Sheikh, who thanked the World Bank "for extending their continuous support to Pakistan's government in its efforts to achieve the sustainable economic development of the country."

The details of the three project the funds will be used for are as follows:

'Pakistan Raises Revenue Program' — $400 million

The programme is aimed at "contributing to a sustainable increase in domestic revenue by broadening the tax base and facilitating compliance," a press release from the Economic Affairs Division said.

It is hoped that the programme will increase Pakistan’s tax to GDP ratio to 17 per cent, increase the number of active taxpayers to 3.5 million, reduce the compliance burden of paying taxes and improve the efficiency of customs controls.

'Higher Education Development in Pakistan' — $400 million

The development objective of the programme is to "support research in strategic sectors of the economy, improve teaching and learning and strengthening governance in the higher education sector."

The finances will be used towards nurturing academic excellence in strategic sectors, supporting decentralised higher education institutes for improved teaching and learning, equipping students and higher education institutions with modern technology, higher education management information system and data drive services and capacity building, project management and monitoring & evaluation.

'Khyber Pakhtunkhwa Revenue Mobilisation and Resource Management Program' — $118 million

This programme is expected to increase collection of KP’s own revenue and improve the management of public resources. "This objective is to be achieved through efficient revenue mobilisation, effective public resource management and capacity building to enhance e-government functionality," the press release said.

The program will help the government of Khyber Pakhtunkhwa to mobilise its own source revenue to and come up with the efficient and strategic use of the province’s financial resources.

Earlier this year in April, World Bank CEO Kristalina Georgieva had pledged to further strengthen cooperation with Pakistan in the areas of 'disbursements programme lending' and 'guarantees provision for raising external funds'.

The pledge was made in a meeting with Prime Minister Imran Khan on the sidelines of the second Belt and Road Forum (BRF) in Beijing.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...