Pakistan and World Bank signs $918m loan agreements
The Government of Pakistan and the World Bank signed three loan agreements worth US$ 918 million to help support revenue mobilization and higher education development in the country.
PM’s Adviser on Finance Dr. Abdul Hafeez Shaikh witnessed the signing of the loan ceremony.
Country Director World Bank Patchamuthu Illangovan signed the agreements on behalf of the World Bank while Economic Affairs Division Secretary Noor Ahmed signed the financing agreements on behalf of the Government of Pakistan.
The representatives of the Higher Education Commission (HEC) and Government of Khyber Pakhtunkhwa signed their respective project agreements.
The details of the three projects:
‘Pakistan Raises Revenue Program’
The World Bank will provide the US $400 million for the programme ‘Pakistan Raises Revenue Program’ which is aimed at contributing to a sustainable increase in domestic revenue by broadening the tax base and facilitating compliance.
Targeted results of the program include: raising Pakistan’s tax to GDP ratio to 17 percent; raising the amount of active taxpayers to 3.5 million; decreasing the compliance burden of tax payments and enhancing customs control effectiveness.
‘Higher Education Development’
The Higher Education Development in Pakistan worth US$400 million would support research excellence in strategic sectors of the economy, improve teaching and learning and strengthening governance in the higher education sector.
The project would fund to foster academic excellence in strategic industries; support decentralized higher education institutes for enhanced teaching and learning; equip students and higher education institutions with contemporary technology; information system and data drive facilities for higher education; and capacity building, project management, and tracking and assessment.
‘KP Revenue Mobilisation and Resources’
The third agreement related to Khyber Pakhtunkhwa (KP) Revenue Mobilisation and Resource Management Program worth US$118 million would increase the collection of Khyber Pakhtunkhwa’s own-source revenues and improve the management of public resources.
This goal would be accomplished through the efficient mobilization of income; effective management of government resources and capacity building to improve the functionality of e-government.
The program would assist the government of Khyber Pakhtunkhwa to mobilize its own source income and to tackle the constraint of restricted fiscal space for investment and provision of public service and effective and strategic use of the province’s economic resources.
Later, the World Bank country director held a meeting with the finance adviser where Shaikh thanked the World Bank team for extending continuous support to the Government of Pakistan in its efforts to achieve the sustainable economic development of the country.
He appreciated the World Bank’s relationship with Pakistan and desired the programs implementing agencies to put their best efforts to implement their respective programmes to help to achieve the objectives of the program.