IMF, WB seek transparency in foreign-funded projects under CPEC, SIFC

The International Monetary Fund (IMF), World Bank, and other global lenders called for transparency and accountability in foreign-funded projects, including those under special-purpose vehicles like the China-Pakistan Economic Corridor (CPEC) and the Special Investment Facilitation Council (SIFC).

Representatives from various international organisations and development partners, including the World Bank, European Union, Asian Development Bank (ADB), Islamic Development Bank, USAID, UNDP, Germany, Japan, WFP, IFAD, and others, pledged continued support to Pakistan.

However, they emphasized the importance of transparency, alignment with government priorities, and timely disbursement of committed support.

Concerns were raised over project delays, with more than half of the $6.7 billion World Bank-funded projects deemed problematic or unsatisfactory. Similar issues were noted with ADB-funded projects.

Caretaker Finance Minister Dr Shamshad Akhtar expressed her concern over these delays, vowing to bring the issues to the attention of the Prime Minister's Office and provincial governments for their support in expediting project completion.

In such a situation, the Finance Minister emphasized the need to optimize the capital of Multilateral Development Banks (MDBs) and increase lending headroom.

"Debt for nature"

Caretaker finance minister reiterated the appeal for debt-for-nature and debt-for-social-development swaps, underscoring Pakistan's commitment to meeting climate finance targets. 

The appeal was made during discussions with multilateral and bilateral lenders ahead of the UN Climate Change Conference (COP-28) scheduled from Nov 30 to Dec 12 in Dubai.

Dr Shamshad Akhtar, in response to adverse global financial market conditions, deferred plans to launch a conventional Eurobond. Instead, she announced efforts to access climate financing, including through relevant bonds like Environmental, Social, and Governance (ESG), contingent on an improved credit rating following the disbursement of the $700 million second tranche from the $3 billion IMF program.