The government of Pakistan and the World Bank signed an agreement at Washington for IDA credit of SDR 321.3 million (US$ 500 million approximately) for Poverty Reduction and Economic Support Operation (PRESO).

According to an official statement issued here the credit would support government of Pakistan’s programme to regain and maintain economic stability, bring the economy back on track to a higher growth path while protecting the poor and the vulnerable from adverse shocks. PRESO is a single-tranche Development Policy Credit.

The funds will be utilised by the Government of Pakistan for the following key policy areas: Regaining and maintaining macroeconomic stability through increased tax revenue mobilisation, adjustment of fuel prices and power tariffs, improved efficiency of public spending, and strengthened government debt management.

Enhancing competitiveness through reduced barriers to business entry and exit, and strengthened financial sector; and protecting the poor and the vulnerable through improved targeting of safety nets and cash transfer programmes, and strengthened statistical system. ‘PRESO is one of the three budgetary support credits that the World Bank will provide to the Government of Pakistan during the current financial year,” said Farrakh Qayyum, Secretary EAD. staff report.