pakistan economy
Pakistan, which is facing economic crisis, has once again got relief from international organizations. After taking help from IMF, now the World Bank has approved a loan of 700 million dollars (about Rs 6,200 crore) for Pakistan. The purpose of this funding is to handle the wavering economy of the country and to provide government services to the common people in a better way.
The World Bank has given this amount under its multi-year plan Public Resources for Inclusive Development (PRID). This is a long-term plan, through which Pakistan can get a total assistance of up to 1.35 billion dollars. The bank believes that if government resources are used properly, along with economic stability, the general public can also be benefited.
How will the loan be distributed between the center and the provinces?
Out of this $700 million, $600 million will be given to the Central Government of Pakistan, while $100 million has been earmarked for Sindh province. Earlier in August, the World Bank had also given a grant of about 48 million dollars to improve primary education in Punjab. That is, the focus of the bank is not only on the economy, but also on basic sectors like education and health.
Emphasis on tax, budget and system reforms
According to the World Bank, the real problem of Pakistan is not just lack of money, but weak tax system, poor budget management and lack of transparency. Under this new scheme, the government will have to work on collecting taxes in a more fair manner, spending the budget in the right place and strengthening the data system, so that decisions can be taken on the basis of data.
School, hospital and trust issue
The World Bank says that with this loan, schools and primary health centers will get more and stable funds. Besides, emphasis will also be laid on increasing trust between the government and the public. The bank believes that when people see that money is being spent in the right place, confidence in the system will return.
Recently, a joint report of IMF and World Bank said that fragmented policies, opaque budget and political interference in Pakistan are hindering investment and weakening government earnings. The new loan is being considered as part of an effort to remove these shortcomings.
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