Second Resilient Institutions for Sustainable Economy

The development objectives of the Second Resilient Institutions for Sustainable Economy Development Policy Financing (DPF) for Pakistan are: (i) enhancing the policy and institutional framework to improve fiscal management, and (ii) improving the regulatory framework to foster growth and competitiveness. The operation was designed to take account of country-specific lessons from past operations. The design is informed by lessons from the 2018 Implementation Completion and Results Report (ICR) of the fiscally sustainable inclusive growth programmatic DPF series, the 2018 ICR of the competitiveness and growth DPF, and the 2020 Project Performance Assessment Report. Lessons have been incorporated into this series by: (i) focusing on institutional reform for better macro-fiscal management; (ii) including the provincial governments in critical reforms; (iii) complementing the operation with technical assistance project support; and (iv) seeking to calibrate the substance and pace of the reform program with the previous International Monetary Fund- Extended Fund Facility (IMF-EFF) program and the government’s implementation capacity.