World Bank Supports
Pakistan's Reform Program
The
World Bank on May 22 approved US$ 350 million credit to
support the Government of Pakistan's medium-term reform
program, which aims at promoting sustained economic growth
as its main vehicle for poverty reduction. The Second Poverty
Reduction Support Credit (PRSC II), which supports the government's
Poverty Reduction Strategy Paper, will finance reforms designed
to maintain macro-economic stability, improve management
and effectiveness of public expenditures, and facilitate
power sector reforms.
It will also support privatization program, improve the
regulatory framework for competition, and enhance female
labor force participation and labor market flexibility.
Over the last six years, Pakistan has emerged as one of
the fastest growing economies in Asia, with rising per capita
income, and improving social indicators.
Growth has averaged 7 percent between 2003/04-2005/06, and
the poverty ratio has fallen significantly in recent years.
The country has also made impressive strides in deregulating
its economy to increase competition and reduce cost of doing
business, and implementing structural reforms, particularly
in the power sector.
"Economic reforms are now contributing to increased
investor interest from Pakistanis and foreign investors
alike," said Yusupha Crookes, World Bank Country Director
for Pakistan.
"The ongoing reform program supported by this project
will contribute to sustain rapid growth. We hope this, along
with policy reforms and public investments to increase poor
people's participation in the economy, will accelerate the
country's progress towards reaching the Millennium Development
Goals."
The PRSC II will also support improved governance through
reforms in financial management, procurement, and the statistical
system. It will help accelerate progress in human development
by creating additional public resources for education and
health, and strengthening the health and education national
sector policies.
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