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  • World Bank to finance $1.15 billion for two power projects

    World Bank to finance $1.15 billion for two power projects

    ISLAMABAD: The World Bank will provide a concessional financing to support Pakistan’s two power projects.

    Prime Minister Imran Khan today witnessed the signing ceremony of two financing agreements worth $ 1.15 billion with the World Bank.

    This is concessional financing being provided by the World Bank for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, evacuation and transmission of power from DASU Hydropower Project.

    Federal Minister for Economic Affairs Makhdum Khusro Bakhtyar, Federal Minister for Power Omar Ayub Khan, Chief Minister Khyber Pakhtunkhwa Mahmood Khan, Advisor to CM Khyber Pakhtunkhwa Himayat Ullah Khan were also present.

    The projects’ details are: i. Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) Project – $450.0 Million.

    The project’s development objective is to increase renewable energy generation and strengthen the capacity of associated institutions in Khyber Pakhtunkhwa.

    The Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) is a transformational program that would help in building capacity and institutions for harvesting the vast renewable energy potential of the Khyber Pakhtunkhwa Province.

    The project will support the

    (i) construction of 88MW Gabral-Kalam Hydropower Project; and

    (ii) construction of 157MW Madyan Hydropower Project.

    It would provide planning and management capability to help transform Pakhtunkhwa Energy Development Organization (PEDO) into a world class entity for development of renewable energy resources. ii. Evacuation of Power from DASU Hydropower (Phase-I) Project – US$700.0 million:

    The objective of the project is evacuation and transmission of power from 2160 MW Dasu Hydropower (Phase-I) Project to respective load centers of DISCOs by construction of 765 kV double circuit transmission line from DASU HPP to Islamabad via Mansehra.

    It will also facilitate in evacuation of power from new upcoming projects in that area. Noor Ahmed, Secretary, Economic Affairs Division signed the two loan agreements on behalf of Government of Pakistan while the representatives of Government of Khyber Pakhtunkhwa, WAPDA and National Transmission & Dispatch Company (NTDC) signed their respective project agreements.

    Najy Benhassine, Country Director, World Bank signed the agreements on behalf of the World Bank.

    Prime Minister Imran Khan stated that Pakistan values its partnership with the World Bank and the Government will continue with the objective of socio-economic uplift of the people of Pakistan.

    The Country Director of WB reiterated his commitment to support Pakistan and appreciated the government’s resolve, efforts and measures in the fight against COVID-19 and continuing efforts for structural reforms.

    Makhdum Khusro Bakhtyar, Minister for Economic Affairs, while thanking the World Bank for its continued support, said that Government of Pakistan is committed to continue the structural reforms process in the country.

  • World Bank appoints Najy Benhassine as country director for Pakistan

    World Bank appoints Najy Benhassine as country director for Pakistan

    ISLAMABAD: World Bank has appointed Najy Benhassine as new Country Director for Pakistan effective August 1. He succeeds Illango Patchamuthu, who completed his term on July 31, a statement said on Monday.

    Benhassine most recently served as Regional Director for Equitable Growth, Finance and Institutions in the Middle East and North Africa. Prior to this, he was Director for the Finance, Competitiveness & Innovation Global Practice.

    Since joining the World Bank in 2001, he has worked extensively on economic development, finance, private sector development and impact evaluations.

    Benhassine’s appointment comes at a time when the government of Pakistan is confronting both the immediate and longer-term health and economic impacts of the COVID-19 crisis.

    “It is critical that we help protect the lives and livelihoods of the people of Pakistan and support economic recovery in the wake of the COVID-19 pandemic,” said Benhassine.

    “My first priority is to ensure that World Bank support helps to not only alleviate the immediate health and economic impacts of the crisis but at the same time support the Government’s ambitious social and economic reform program to promote a more resilient and inclusive economy so that Pakistan can build back better.”

    The World Bank portfolio in Pakistan includes 56 active projects amounting to approximately $11 billion.

    The portfolio supports reforms and investments to strengthen institutions, particularly in fiscal management and human development; multi-sectoral initiatives in children’s nutrition, education and skills, irrigated agriculture, tourism, disaster risk management, and urban development; and clean energy, and social and financial inclusion.

    The World Bank is supporting the government of Pakistan through COVID-19 emergency response projects totaling almost half a billion to help the country prevent, detect and respond to the pandemic and strengthen public health preparedness.

  • World Bank approves $500 million to help Pakistan strengthening fiscal management

    World Bank approves $500 million to help Pakistan strengthening fiscal management

    KARACHI: The World Bank on Tuesday approved $500 million in financing for the Resilient Institutions for Sustainable Economy program (RISE) to help Pakistan strengthen fiscal management.

    A statement issued by The World Bank’s Board of Executive Directors approved today $500 million in financing for the Resilient Institutions for Sustainable Economy program (RISE) to help Pakistan strengthen fiscal management, promote transparency and private sector growth, and undertake foundational reforms in the energy sector to transition to low-carbon energy. These reforms are critical to build fiscal resilience and stimulate recovery from impacts of the COVID-19 pandemic.

    “Pakistan is suffering a significant fiscal shock from the economic fallout from the pandemic and the increased spending on crisis response, including emergency healthcare, social protection, and business support,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

    “The RISE program supports the government efforts to achieve macroeconomic stability, accelerates long-delayed policy reforms, and sets the course for a strong and competitive economy.”

    The program supports reforms to broaden the tax base and reduce distortions in tax policy, strengthen debt management and transparency, and implement urgently needed reforms to achieve financial viability of the power sector.

    In tandem, reforms to lower barriers to the formalization of firms, increase the use of digital payments, and better regulate real estate developments will help create an enabling environment to attract private investment.

    “RISE supports reforms such as harmonizing sales tax and making the trade tariff structure more competitive. This could help the country attract new investments and spur economic recovery,” said Shabih Mohib, Lead Country Economist for the World Bank.

    “Taken as a whole, we hope that RISE can build a foundation for sustainable growth driven by the private sector.”

    The program supports the foundations for a move toward a low-carbon and more financially viable power sector. The program includes reforms to improve the integrity of the banking sector, promote digital finance, and create a more competitive national tariff policy to promote trade and reduce costs to consumers.

    The digital finance component of the program will help deepen electronic money transactions and digital payments will benefit populations with limited mobility, such as women and low-income populations.

    RISE is aligned with the government’s COVID-19 crisis response, which aims to scale up spending on health and social protection while pursuing macro-fiscal reforms in the face of economic contraction.

    RISE complements the Securing Human Investments to Foster Transformation (SHIFT) which focuses on human capital and an upcoming Program for Affordable and Clean Energy (PACE) which will tackle power sector reforms.

    PACE, which will include critical power sector reforms needed to put the country on sustainable fiscal path, will precede the second programs of RISE and SHIFT.

  • World Bank approves $500 million to help Pakistan’s COVID-19 emergency response

    World Bank approves $500 million to help Pakistan’s COVID-19 emergency response

    WASHINGTON: The World Bank’s Board of Executive Directors approved today a $500 million program to help Pakistan improve access to quality healthcare and education, support economic opportunities for women, and strengthen social safety nets as the country braces to limit the impact of the COVID-19 pandemic.

    The Securing Human Investments to Foster Transformation (SHIFT) program will support policy reforms to help Pakistan’s COVID-19 emergency response and protect human capital investments, a statement said.

    It will support greater coordination between provinces and federal authorities to immunize millions of children and reduce their risks of contracting polio and other diseases.

    SHIFT also improves targeted safety net programs that will benefit 12 million people impacted by the COVID-19 crisis, both at the federal and provincial levels.

    “The global COVID-19 pandemic is impacting day-to-day life in Pakistan – not solely from economic disruptions but also additional stress on public services that jeopardize human capital accumulation,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

    “This program underscores the criticality of universal healthcare and social protection services that are durable to exogenous shocks such as Pakistan is facing now.”

    SHIFT supports three policy reforms aimed at building Pakistan’s workforce and improving social safety-net programs, which are:

    (i) increase the quality of essential services, especially primary health care and equitable access to basic education, and civil registration and vital statistics,

    (ii) recognize women’s economic contributions and support participation in the labor force through appropriate working conditions, and

    (iii) improve efficiencies in safety nets for COVID-19 response, and strengthen the effectiveness national and federal safety net programs in the short to medium term.

    “Pakistan’s ability to mitigate socio-economic impacts of COVID-19 depends on how quickly and efficiently social safety net programs can reach those most in need,” said Cristina Panasco Santos, Task Team Leader for the program.

    “This program supports alignment efforts between Ehsaas, safety nets provincial programs to ensure that the most vulnerable and affected populations are identified and receive assistance.”

    The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response.

  • World Bank approves $300 million to support Pakistan human capital, livelihoods

    World Bank approves $300 million to support Pakistan human capital, livelihoods

    WASHINGTON: The World Bank has approved $300 million to support human capital and livelihoods in Pakistan, said a statement on Wednesday.

    Pakistan is accelerating investments in health care and education to prepare children to reach their productive potential and generate wealth. Today the World Bank committed $200 million for the Punjab Human Capital Investment Project that will strengthen health services and social protection for poor and vulnerable households in select districts in Punjab.

    “Pakistan’s strongest asset is its people. Investing at the start of life, especially for girls and women, is essential to empower citizens to thrive,” said Illango Patchamuthu, World Bank Country Director for Pakistan. “This project will help the Punjab province to invest in early years now to create a productive workforce for the future.”

    The project will increase the quality and uptake of health services, including maternal care, immunizations, and childbirths attended by qualified professionals, reaching up to 18 million people. It will provide early childhood education and skills training for young parents and will improve systems to more efficiently manage economic and social inclusion programs.

    “There are substantial financial and non-financial barriers to access quality health services, such as expenses to visit health facilities and the burden of household chores and childcare, especially among women in poor households,” said Yoonyoung Cho, Task Team Leader for the project.

    “The first 1,000 days are the most critical time in a child’s development, thus prioritizing maternal and natal care is integral to their productive capacity and strengthening human capital accumulation in Pakistan.”

    The World Bank also approved $85 million in grants and credits from IDA18 Regional Sub-Window for Refugees and Host Communities and $15 million from the Multi-Donor Trust Fund to the Federal Government and the Government of Balochistan to support the strengthening of institutions, delivery of services, and support for livelihoods and enterprise development.

  • Economy likely to grow better than World Bank forecast

    Economy likely to grow better than World Bank forecast

    ISLAMABAD: The finance ministry on Thursday said that the economy likely to grow better than forecast of World Bank.

    The ministry said that the government’s extensive measures have helped the economy move progressively along the adjustment path and stabilization process and economic recovery is expected towards the end of FY2020.

    “The government is focused on bringing improvement in the real sector growth through inclusive growth in agriculture, industrial and services sectors,” said a statement by the Finance Division in response to certain news reports carried in a section of the regarding downward revision of growth by the World Bank.

    The government is cognizant of challenges and stringently focused on resolving them particularly, reducing inflation, creating job opportunities and achieving high growth rate.

    “Keeping in view the positive developments on major economic indicators, we expect that the economy will likely to achieve better growth prospects as against the projections of the World Bank.”

    The World Bank in its report ‘2020 Global Economic Prospects’ had forecasted Pakistan`s current year growth rate at 2.4 percent before touching 3 percent next fiscal year and 3.9 percent in FY2022.

    The bank’s report had also mentioned that the growth had decelerated an estimated 3.3 percent in FY2018-19, reflecting a broad-based weakening in domestic demand.

    In addition, the report had described that significant depreciation of the Pakistani rupee resulted in inflationary pressures, monetary policy tightening restricted access to credit, curtailing public investment to deal with large twin deficits and budget deficit rose more sharply than expected.

    It may be pointed out that during FY2019, the slowdown in economy was largely attributed to various policy measures to manage the twin deficit crisis. Consequently, these measures helped to contain demand pressures and contributed to import compression.

    However, the outcomes of these measures were realized on the industrial sector.

    Particularly LSM sector witnessed a negative growth. At the same time, high input costs along with water shortages weakened agriculture sector’s output and hence, the drag in the commodity-producing segments spilled over to the services sector as well.

    Resultantly, the real GDP growth recorded at 3.3 percent. At the start of current fiscal year, with government’s extensive measures, Pakistan’s economy is now moving progressively along the adjustment path and stabilization process; however towards the end of FY2020, economic recovery is expected. In this regard, Government is focused on bringing improvement in the real sector growth through inclusive growth in agriculture, industrial and services sectors.

    For growth in agriculture sector, the target production of wheat is 27 million tons given by FCA in last meeting held in October. In addition to uplift agriculture sector “National Agriculture Emergency Programme” in coordination with all provinces has been introduced and approved 13 mega projects at the cost of Rs 287 billion.

    Agriculture credit disbursement target for CFY20 has been set at Rs.1,350 billion. Agriculture credit disbursement increased by 20 percent to Rs 482 billion during Jul-Nov, FY2020 against Rs.402 billion last year. To boost industrial sector, the government is providing a series of subsidies and incentives to industrial sector.

    These include subsidies to industry for electricity and gas, export development package and continue to provide Long-Term Trade Financing (LTFF) and Export-Refinancing Scheme (ERS) at subsidized rate. Similarly, PSDP release process is simplified and up to 3rd January, 2020 Rs.301.4 billion (Rs.225.4 billion) released to encourage construction related industries especially cement & steel.

    In addition, Cement dispatches growth of 6.55 percent (24.8 million) during July-Dec, FY2020 against 23.2 million in the last year. This development would likely stimulate the growth in LSM in coming months. On fiscal side, to control expenditures, government is following austerity measures with complete restriction on supplementary grants.

    For export promotion several initiatives have been announced such as support duty structure on raw materials and intermediate goods, improve mechanism for tax refunds, provide electricity and gas at competitive cost, and make Pakistan part of the global value chain.

    Government’s various measures to stabilize the economy has already started to reap benefits in the form of sustained adjustment in current account deficit (CAD) and continued fiscal prudence.

    A brief review indicates that CAD reduced by 72.9 percent during July-November FY2020, Fiscal deficit contained at 1.6 percent of GDP (Rs 686 billion) during Jul-Nov FY2020 ,Primary balance posted surplus of Rs 117 billion during Jul-Nov, FY2020 (0.3 percent of GDP), significant rise in FBR tax revenues to Rs.2085.2 billion (16.4 percent) during July-December, FY2020, improved ranking in ease of doing business, ranked among the world’s top 10 best business climate improver and ‘Stable’’ credit outlook to B3 from ‘Negative’ by Moody’s is an affirmation of Government’s success in stabilizing the economy and laying a foundation for robust growth.

  • World Bank’s IFC signs financing agreement to build six power projects in Pakistan

    World Bank’s IFC signs financing agreement to build six power projects in Pakistan

    ISLAMABAD: IFC, a member of the World Bank Group, has signed a financing agreement of $450 million to build six wind power projects in Pakistan.

    A statement on Friday said that IFC led the financing of a first-of-its-kind program to build six wind power projects in Pakistan, named the Super Six, with a total investment of US$450 million, to help deliver cleaner, cheaper power to meet the country’s critical demand for energy and reduce reliance on expensive imported fossil fuels.

    Financing agreements for the landmark wind power program were signed by IFC’s Senior Manager, Nadeem Siddiqui and private sector power developers at a special ceremony witnessed by Pakistan’s Prime Minister, Imran Khan and Federal Minister for Energy, Omar Ayub.

    The Super Six plants, with a combined capacity of 310 megawatts, will deliver among the lowest cost power generation in the country to date. They will be built in the Jhimpir wind corridor in Sindh province and will generate more than 1,000 gigawatt hours of electricity annually, enough to power 450,000 homes. The program is also expected to lead to emission reductions of about 650,000 tons of CO2 per year.

    All Super Six projects are being developed by domestic companies: ACT Group, Artistic Milliners (Private) Limited, Din Group, Gul Ahmed Group and Younus Brothers Group.

    “The government is aiming to increase the non-hydro renewable energy share in the overall generation mix from 4 percent to 20 percent by 2025 and it is welcoming to see Pakistan’s local private sector behind these Super Six wind projects, supporting the government’s long-term objective to see more wind and solar in the country’s energy mix,” Omar Ayub said.

    “This additional clean power will help meet growing demand, reduce the average cost of electricity, and improve both reliability and security of supply,” IFC’s Vice President for Asia and Pacific, Nena Stoiljkovic said.

    “We hope this will send a strong signal to the private sector that the renewable energy market in Pakistan is viable and sustainable, as well as beneficial to the Pakistani people.”

    As part of the program, IFC is providing a financing package of US$320 million, comprising US$86 million from its own account and US$234 million mobilized from other lenders, which include Deutsche Investitions- und Entwicklungsgesellschaft (DEG, part of KfW Group of Germany), and local banks Bank Alfalah, Bank Al Habib and Meezan Bank.

    The program is in line with the joint energy strategy of the World Bank Group, which includes IFC, the World Bank and the Multilateral Investment Guarantee Agency (MIGA), to help address Pakistan’s structural issues in the energy sector, through policy reforms and increases in private investments to expand clean energy generation and bring down the cost of power.

    The cost of power from the Super Six projects is expected to be more than 40 percent lower than the current average cost of generation, a move that is expected to spur more investments in renewable energy in the country. IFC, one of the largest investors in Pakistan’s power sector, financed the first wind power project in the country in 2011 and helped created the framework for financing hydro and wind Independent Power Producers.

    With this program, IFC will have made investments in 11 wind power projects in Pakistan. The World Bank is supporting the government on policy reforms to enhance the energy sector’s sustainability and the implementation of the upcoming new renewable energy policy framework.

  • Imran Khan appreciates World Bank’s financial, technical support to Pakistan

    Imran Khan appreciates World Bank’s financial, technical support to Pakistan

    ISLAMABAD: Prime Minister Imran Khan has appreciated the World Bank’s financial and technical support to Pakistan.

    He said this while welcoming World Bank Group President David R. Malpass here on Thursday.
    The prime minister reiterated the government’s resolve towards strengthening of economy, ensuring transparency and good governance, institutional reforms, tax reforms and socio-economic development of the marginalized sections of society.

    He said that ease-of-doing business, enhancing tax base, domestic resource mobilization, attracting foreign investment and financial reforms agenda s the foremost priority of the government.

    Prime Minister Khan apprised that the government has launched various initiatives aimed at welfare of the youth, poverty alleviation and housing sectors that will ultimately result in economic development.

    President World Bank was accompanied by Regional VP South Asia Hartwig Schafer, Ms. Ceyla Pazarbasioglu-Dutz, Regional Vice President IFC Ms. Snezana Stolijkovic and Country Director World Bank Pakistan Patchamuthu Illangovan.

    The Pakistani side comprised of Minister for Economic Affairs Muhammad Hammad Azhar, Minister Planning Makhdoom Khusro Bakhtiar, Minister Water Resources Faisal Vawda, Advisor on Finance Dr. Abdul Hafeez Sheikh, Advisor on Institutional Reforms Dr. Ishrat Hussain, SAPM Dr. Firdous Ashiq Awan, SAPM Dr. Sania Nishtar, Governor State Bank Raza Baqir, Chairman FBR Syed Shabbar Zaidi and senior officers.

    President World Bank Group, David Malpass appreciated Prime Minister Imran Khan for personally spearheading various flagship programs of the government. He also recognized the efforts of the government towards economic turn-around, reducing expenditures, practicing austerity and initiating reforms in critical sectors of the economy.

    He said that there was substantial progress in economic indicators despite Global and internal fiscal challenges.

    Later, a round-table conference was also held wherein detailed discussions were held on issues related to energy sector and reforming tax regime of the country. Minister for Economic Affairs Hammad Azhar, in his opening remarks, highlighted overall reform agenda of the government and the efforts being made for economic turn-around.

    Advisor Finance Dr. Abdul Hafeez Sheikh gave an overview of the achievements made by the Government during last one year. He also underlined the efforts made by the government to stabilize the economy and to put it onto the path of growth.

    He said that there was a considerable progress this year on exports, containing fiscal and current account deficits, revenue collection, restricting expenditures and exchange rate stabilization.

    Minister for Power Omar Ayub Khan and SAPM on Energy Nadeem Babar shared the strategy of the Government to overcome the issues related to energy sector including circular debt and efforts being made to diversify energy-mix with greater reliance on alternate and renewable energy resources.

    The World Bank President David R. Malpass also visited Tarbela Dam Project on Thursday and had a round of the Main Dam and the Power House of Tarbela 4th Extension Hydropower Project.

    Water Resources Federal Minister Muhammad Faisal Vawda, Water Resources Federal Secretary Muhammad Ashraf, WAPDA Chairman Lt Gen Muzammil Hussain (Retd) and World Bank senior officials accompanied him during the visit.

    Speaking on the occasion, World Bank President David R. Malpass expressed his pleasure over completion of Tarbela 4th Extension Hydropower Project within time and less than estimated cost, adding that the work on the project is impressive.

    The efforts of Government of Pakistan particularly Ministry of Water Resources and the Minister Faisal Vawda for improvement of water resources in Pakistan are applauded.

    President World Bank appreciated the efforts of Ministry of Water Resources especially the Minister for resolving the issues in relation to completion of Dassu Hydral Power Project, construction of Dams and other related projects.

    The team of World Bank especially recognized the untiring efforts of Faisal Wadda, Minister for water Resources for effectively coping with the challenges related to water issues in Pakistan.

    Earlier, Water Resources Federal Minister Muhammad Faisal Vawda thanked the World Bank for the cooperation it has been providing to Pakistan for harnessing water and hydropower resources since 1960.He expressed the hope that this cooperation will further enhance for implementation of various projects in the days to come.

    Vawda said we are taking comprehensive and effective measures for improvement of water resources and construction of dams in Pakistan.

    Pakistan will witness more progress in hydropower and water sectors with cooperation of Water Bank in future. Faisal Vawda, Federal Minister for Water Resources further added.

    He said 523 billion units of electricity have been contributed by Tarbela Hydel Power Station to the National Grid. Welcoming the World Bank President at Tarbela, WAPDA Chairman Lt Gen Muzammil Hussain (Retd) commended that the World Bank not only helped broker Indus Water Treaty between Pakistan and India but also administered the entire financial arrangements with assistance of the friendly countries to complete Indus Basin Replacement Works, which included two mega dams namely Mangla and Tarbela, five barrages and nine inter-river link canals to divert water from the Western Rivers to the Eastern Rivers.

    He also appreciated the World Bank for financial support for Tarbela 4th Extension Hydropower Project, Dasu Hydropower Project and upcoming Tarbela 5th Extension Hydropower Project. WAPDA is looking forward to World Bank’s support for other projects, located on Indus Cascade.

    The projects on Indus Cascade have the great potential to store water and generate phenomenal hydel electricity, he further said. Briefing the World Bank President about the benefits of Tarbela Dam Project, the Chairman said that as many as 378 MAF water has been released from Tarbela Reservoir to meet irrigation needs of the country.

    In addition, Tarbela 4th Extension Hydropower Project, commissioned last year, has also generated 5.6 billion units – more than the generation envisaged in PC-I of the project.

  • World Bank Group President arrives for three-day visit

    World Bank Group President arrives for three-day visit

    ISLAMABAD: David Malpass, President of World Bank Group will arrive in Islamabad today Wednesday, October 30, 2019 for a three-day visit, his first trip to Pakistan since assuming World Bank Group leadership on April 9, 2019.

    While in Pakistan, Malpass will meet with Prime Minister Imran Khan.

    He will also meet the Chief Minister of Sindh, Federal and Provincial Ministers, Advisors, the State Bank Governor, members of Parliament, beneficiaries of the Benazir Income Support Program, and representatives of the private sector.

    “My visit to Pakistan provides a good opportunity to discuss the need for important reforms to stabilize the Pakistani economy and accelerate broad-based growth,” said Malpass.

    “I look forward to hearing from Prime Minister Imran Khan and the Chief Ministers on their priorities and how the World Bank Group can best work with Pakistan to improve its business and jobs environment, and create conditions for people to gain education, skills, and good health.”

    During his visit, President Malpass will engage on reforms, including harmonizing the sales tax across Pakistan to further improve the business environment and enhance revenue collection; lowering circular debt in the power sector and increasing the share of renewable energy for environmental sustainability; harnessing a greater role for women in the economy; and unleashing digital payments to boost financial inclusion.

    President Malpass will visit a World Bank-supported hydropower project in Tarbela, where the Bank is currently financing additional capacity of 4GW of cheaper and environment-friendly energy.

    President Malpass will participate in an event to celebrate Pakistan’s progress in Ease of Doing Business 2020, and to discuss useful next steps.

    He will also participate in the launch of the National Payments Systems Strategy with the government and representatives from the private sector.

    Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided $40 billion in assistance.

    The World Bank’s program in Pakistan is governed by the Country Partnership Strategy for FY2015-2020 with four priority areas of engagement: energy, private sector development, inclusion, and service delivery.

  • Pakistan among top 10 improvers in World Bank’s ease of doing business

    Pakistan among top 10 improvers in World Bank’s ease of doing business

    ISLAMABAD: The World Bank on Thursday said that the enactment of six regulatory reforms has landed Pakistan among the world’s top 10 business climate improvers.

    A study of the World Bank Group’s Doing Business 2020 said that due to a concerted improvement in business regulation, Pakistan climbed 28 places and rose to a rank of 108 in the global ease of Doing Business rankings this year from 136 the previous year.

    “This rise is significant and made possible by collective and coordinated actions of Federal Government and Provincial Governments of Sindh and Punjab over the past year,” said Illango Patchamuthu, World Bank Country Director for Pakistan. “The accelerated reform agenda has many noteworthy features to improve quality of regulations, reduce time and streamline processes. This momentum needs to be sustained in the coming years for Pakistan to continue to make progress.”

    The reforms that helped the country improve its ranking are significant. The country has made starting a business easier by expanding the functionalities of the online one-stop-shop. This reduced the number of procedures required to set up a business from 10 to five and improved the economy’s score for starting a business. Additionally, in Lahore, the Labor Department registration fee was abolished.

    Authorities made the approval process for obtaining a construction permit easier and faster in both Karachi and Lahore. In Karachi, the process was also made safer by ensuring that building quality inspections take place regularly. Pakistan also eased the process for paying taxes by introducing online payment modules for value added taxes and corporate income taxes. The government also lowered the corporate income tax rate for the 2018 fiscal year. This reform reduced the number of payments from 47 to 34 and the total number of hours required to comply with tax requirements per year from 294 to 283.

    Pakistan also made it easier to get electricity and register property. Karachi and Lahore enforced service delivery time frames and launched an online portal for new applications. In addition, the country increased the transparency of electricity tariff changes. Karachi made property registration faster by making it easier to execute and register a deed at the Office of the Sub-Registrar. Lahore increased the transparency of the land administration system by publishing its fee schedule online. Lastly, in the area of trading across borders, Pakistan enhanced the integration of various agencies in the Web-Based One Customs (WEBOC) electronic system and ensured coordination of joint physical inspections at the port.

    Pakistan continues to perform best on the protecting minority investors indicator, earning the maximum possible points on the extent of ownership and control index, which measures governance safeguards protecting shareholders from undue board control. Globally, Pakistan is in the top 30 economies on this measure.

    Going forward, Pakistan has other opportunities for improvement in the areas measured by Doing Business. For example, on enforcing contracts, the country ranks 156th. It takes 1,071 days to resolve a commercial dispute in Pakistan, almost twice the average among OCED high-income economies.