The World Bank has given the green light for a $350 million financial package to support Pakistan under the second phase of the Resilient Institutions for Sustainable Economy (RISE-II) initiative.

The funding is intended to enhance fiscal management and foster competitiveness to facilitate sustained and inclusive economic growth in Pakistan, where the economy faces challenges such as persistent inflation and dwindling foreign reserves.

Derek H. C. Chen, the task team leader for the plan, highlighted the opportunity for Pakistan to address longstanding structural issues in its economy after the upcoming general elections, building on the foundations laid by RISE II and support from other international financial institutions (IFIs).

The financial assistance also aims to restore macroeconomic balance and establish a basis for sustainable development, according to the World Bank’s official statement. The funding will contribute to growth and competitiveness by reducing the cost of tax compliance, improving financial sector transparency, promoting digital payments, and boosting exports through lower import tariffs.

Additionally, the financing will promote fiscal policy coordination, enhance debt transparency, and strengthen property sector taxes. Chen emphasized that not seizing this opportunity could expose the country to recurring economic cycles of stagnation and growth.

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