The World Bank s Board of Directors discussed the 5-year Country Strategy Partnership for Pakistan visualizing a "notional financing envelope" of $11 billion. However, the Ministry of Finance contends that the amount has been approved. Rachid Benmessaoud, the World Bank Country Director for Pakistan failed to offer a response to a question on possible financing for the Diamer-Bhasha Dam.
The Country Director urged the government to grant independence to National Electric Power Regulatory Authority (Nepra) in power tariff determination. There is no loan condition to raise power tariffs; but maintained that poverty is on the decline in Pakistan and the government has initiated programmes for poverty eradication.
The Word Bank approved $1 billion package of assistance to support Pakistan's economic reforms. The assistance package includes 2 Development Policy Credits (DPCs) to support the government of Pakistan's efforts to improve power sector, and reinvigorate growth and investment for reducing poverty and building shared prosperity.
An amount of $600 million, from a co-financing support of the Asian Development Bank (ADB) and the Japan International Credit Agency (JICA) is earmarked for developing an efficient and consumer-oriented electric power system that meets the needs of its people and economy.
The Power DPC focuses on policy and institutional actions that improves financial viability and reduces the burden of public financing. The Power DPC is structured around 3 objectives: targeting power subsidies to the poorest and improving tariff policy; improving sector performance and opening the market to private participation; and ensuring accountability and transparency.
The World Bank approved $400 million to support Pakistan's goal of accelerating growth to help create jobs and economic opportunity. The main development objectives are to increase private and financial sector development, improve the business environment, facilitate trade and promote financial inclusion, enhance revenue to create fiscal space for expanding social protection.
The two credits totalling $1 billion would finance from the International Development Association (IDA), and will be on standard IDA terms, with a maturity of 25 years, including a grace period of 5 years.
Pakistan Country Partnership Strategy is anchored in the government's framework of 4Es: Energy, Economy, Extremism and Education; and the priorities of the incoming Vision 2025.