The World Bank has received in-principle approval from Pakistan’s caretaker Finance Minister, Shamshad Akhtar, for an additional contribution of $425 million towards social security initiatives. This announcement follows the ongoing collaboration between Pakistan and the World Bank to address crucial social and economic challenges in the country.
In a meeting held on Monday, Finance Minister Shamshad Akhtar granted in-principle approval for the additional financing, focusing on two major projects valued at $425 million. The World Bank delegation, led by Country Director Najy Benhassine, engaged in discussions highlighting the significance of these initiatives.
The Crisis-Resilient Social Protection Programme (CRISP), a major recipient of the additional funding, secured approval during the meeting. The World Bank has committed $250 million to CRISP, which will be implemented through the Benazir Income Support Programme (BISP). The objective of CRISP is to bolster the development of an adaptive social protection system, contributing to the resilience of poor and vulnerable households in the face of future crises.
To address the ongoing social crisis, Finance Minister Akhtar proposed a follow-up meeting next week to finalize the specific details of the CRISP programme. During the discussions, another initiative, the Resilient and Accessible Microfinance Programme (RAM), secured approval for an allocation of $175 million. RAM aims to enhance access to microcredit, providing small loans to underprivileged individuals.
Emphasizing the importance of mobilizing local resources, Minister Akhtar suggested reducing reliance on foreign loans to support microfinance banks and institutions. In line with these considerations, she requested a comprehensive dataset to strengthen the background work of the programme and ensure accuracy in its implementation. Additionally, Minister Akhtar urged the World Bank team to collaborate with the International Finance Corporation team to further refine the programme, aligning it with the country’s specific needs and objectives.
