ISLAMABAD, Nov 12: The World Bank and its investment agencies plan to help Pakistan improve its investment climate through macro-economic and social reforms, direct project investments and political risk guarantees over the next three years.

Officials in the economic affairs division told Dawn that the bank assistance would be in a coordinated fashion in which both of its investment agencies — International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) — would participate.

The officials, however, said that the WB programme would be finalized after complete transfer of power to the elected government. The WB support would be in the form of four instruments under the private sector development strategy 2003-05 for Pakistan.

Firstly, policy dialogue and adjustment leading to implementation of macroeconomic and sectoral reforms aimed at improving the investment climate and overall incentive regime.

Secondly, advisory work to support institutional and regulatory reforms, including privatization.

Thirdly, analytical work to improve understanding of the constraints to private investment and productivity growth and identify institutional, policy and regulatory framework which will encourage private investment and productivity growth.

Fourthly, equity and loan investments and guarantees to mobilize private investment in reformed sectors.

The World Bank will take the lead in analytical and advisory work, drawing on the perspectives of the IFC and MIGA and in supporting the government’s reforms programme.