Ambassador of Pakistan to the US, Mr. Jalil Abbas Jilani signed two Developmental Policy Credit Agreements on behalf of the Government of Pakistan at the World Bank. Mr. Philippe H. Le Houerou, Vice President of the World Bank Group’s South Asia Region signed the Agreements on behalf of the World Bank. The Policy Credit Agreements include: (i) Pakistan First Power Sector Developmental Policy Credit amounting to US $ 600 million; and (ii) Fiscally Sustainable and Inclusive Growth Developmental Policy Credit worth US $ 400 million.
The purpose of Power Sector Developmental Policy financing is to support Pakistan’s program of reforms aimed at developing an efficient and consumer oriented electric power system that meets the needs of Pakistan’s people and economy, sustainably and affordably. Meanwhile, the Sustainable and Inclusive Growth Developmental Policy financing seeks to support Government of Pakistan’s efforts to promote private and financial sector development and expand social protection for the poor through enhanced revenue mobilization.
In addition to finalizing the two Policy Credits, the World Bank Board has also approved the World Bank Country Partnership Strategy for Pakistan for the period 2015-19 involving a total outlay of $ 11 billion and allocation of $ 125 million by the IFC for setting up a Three Gorges subsidiary in Pakistan to finance energy related projects.
The World Bank Board decisions are a clear sign of international financial institutions’ growing confidence in Pakistan’s economy and would play a key role in attracting investments to Pakistan from other international financial institutions and bilateral donors, particularly in the energy sector.
May 02, 2014