ISLAMABAD: The World Bank has approved a $400 million loan for Pakistan to accelerate investments in education and health services in Khyber Pakhtunkhwa.

The financing from the International Development Association (IDA) on Thursday approved the loan for the KP government’s Spending Effectively for Enhanced Development (SPEED) programme to help the provincial government strengthen its management of public resources and fiscal planning to sustain human capital investments in education and healthcare services.

By implementing critical reforms in budget allocation and expenditures, the provincial programme will contribute to increased quality of schools and health centres and remove obstacles to reach the last mile in the delivery of education and health services in KP.

The objective of the SPEED programme is to improve the availability and management of public resources for delivery of primary, middle and high school education and primary healthcare services.

Loan will be spent on govt’s ‘Spending Effectively for Enhanced Development’ programme

“The SPEED programme supports a comprehensive and robust approach to public financial management in Khyber Pakhtunkhwa that tackles key bottlenecks in planning, budgeting, procurement, and supply chain management so that adequate resources are available to deliver education and health services on a sustainable basis,” said World Bank Country Director for Pakistan Najy Benhassine.

“It also underscores the provincial government’s commitment to increasing transparency in public finances, service delivery and citizen trust,” he added.

“The SPEED programme, together with the ongoing KP Revenue Mobilisation and Public Resource Management programme, offers a transformative path for the province to scale up public services for its citizens,” said Task Team Leader for the KP-SPEED programme Raymond Muhula.

“The programmes align with the provincial government’s public financial management reforms strategy to support budget execution and expenditure management, and revenue mobilisation.”

The programme will improve predictability of resources to provide access to medicine in primary healthcare facilities, including maternal and neonatal clinics for women across the province, and increase availability of adequate teaching staff in at least 45 per cent of primary, middle and high schools in the province, particularly for girls’ schools.

Meanwhile, Najy Benhassine held a meeting with Finance Minister Shaukat Tarin here on Friday. Mr Tarin stated that the continued support of the World Bank, as a major development partner, was critical to attaining fiscal consolidation, improved service delivery and good governance in Pakistan.

Speaking to the World Bank official, the finance minister reiterated the firm resolve of the government in achieving macroeconomic stability and sustained economic growth by following a consultative process.

Published in Dawn, April 24th, 2021