The World Bank has approved financing of $350 million for Pakistan.
The financing will be provided to the country under the second Resilient Institutions for Sustainable Economy (RISE-II) scheme.
The World Bank has said that the aim of the financing is to strengthen fiscal management and promote competitiveness for sustained and inclusive economic growth in the country whose economy is struggling to grow, with persistently high inflation and foreign reserves running low.
"Based on the foundations laid through RISE II and parallel support by other IFIs, Pakistan has the opportunity to tackle long-standing structural distortions in its economy after the upcoming general elections," Derek H. C. Chen, task team leader of the plan, said in a statement.
The financing also aims to restore macroeconomic balance and lay the foundation for sustainable development, as per the World Bank statement.
Moreover, the financing will foster growth and competitiveness by reducing the cost of tax compliance, improving financial sector transparency, encouraging the use of digital payments and promoting exports by lowering import tariffs, the World Bank said in its statement.
It will also bring about fiscal policy coordination, debt transparency, strengthen taxes in the property sector.
"Failing to use this opportunity would risk plunging the country back into stop-and-go economic cycles," Chen added.
