Govt seeks $1.7b despite breaches

Pakistan intends to proceed with a World Bank programme of about $1.7 billion, although progress on its initial phase has been rated only moderately satisfactory. The financing is intended to support tax revenue measures, more disciplined public spending and stronger fiscal and service-delivery data.

The government has twice departed from the National Tariff Policy condition, most recently after the Economic Coordination Committee approved extra customs duty to protect a tyre manufacturer. A separate commitment to the National Fiscal Pact has also been breached: in June, Rs87 billion was approved for a Sindh project despite the pledge to stop federal funding for provincial matters. The package includes loans for federal and provincial governments, with a further $200 million operation for Khyber-Pakhtunkhwa.