ISLAMABAD: The federal government is seeking financing of $400 million from the World Bank to strengthen the capacity of Khyber Pakhtunkhwa to manage public resources, and improve resource availability and accountability for delivery of education and health services, it was learnt on Saturday.

The KP government has made progress in revenue mobilisation and management of public finance. However, several challenges remain to be addressed.

The government is already taking steps to address issues related to mobilising resources and managing public resources through legislation, and now with the World Bank assistance, it intends to deepen these successes related to weak fiscal management; increased fiscal risks associated with large pension spending and subvention to autonomous bodies and public sector enterprises; and unattractive investment climate and business environment resulting from regulations and procedural bottlenecks.

Published in Dawn, December 28th, 2020