KARACHI: The World Bank’s Board of Executive Directors approved $149.7 million in financing for Pakistan to support two projects related to the country’s digital economy and improved flood resilience, according to a statement issued by the international financial institution on Saturday.
The allocated funding of $78 million for the Digital Economy Enhancement Project is expected to enhance financial management through technology-driven solutions and data-driven decision-making. The investment in digital economy is also likely to streamline public services, increase transparency and foster economic growth.
Simultaneously, the $71.7 million allocation for the Sindh Barrages Improvement Project is likely to ensure greater flood resilience, a critical issue for Pakistan that is highly vulnerable to climate change.
“The catastrophic floods that hit Pakistan in 2022 were a tragic reminder of the importance to build resilience to such disasters, including by strengthening barrages and their management,” World Bank Country Director for Pakistan Najy Benhassine said in a statement.
“Also, supporting the growing digital economy in Pakistan is key for economic and social development, broadening connectivity and access to government and financial services for citizens and entrepreneurs, particularly women,” he added.
The World Bank statement highlighted the digital economy project aims to develop digital authentication and data-sharing platforms. The initiative will enable Pakistan to respond more effectively and efficiently to economic and environmental shocks.
Additionally, it will enhance the delivery of e-government services to citizens and firms, supporting regulatory reforms in the sector. These reforms will facilitate increased private sector participation while strengthening personal data protection and online safety.
The project also seeks to promote financial inclusion by enabling women in particular to open bank accounts or apply remotely for credit through a smartphone application. It will also contribute to addressing barriers such as limited mobility and digital literacy.
“The digital economy and demand for digital government services have been growing across the country, increasing the need for connectivity, digital payments and secure and trusted digital transactions,” the project team leader, Shan Rehman, said. “The project takes a whole-of-government approach to digital transformation and will help ensure that digital platforms are inclusive and trusted.”
About the other project, the bank said having safe and effective barrages to convey flood waters downstream was a crucial part of building climate resilience in Sindh.
It informed that its financing would contribute to strengthening the provincial Barrage Management Unit’s technical capacities, promoting women’s participation in emergency preparedness and implementing extensive citizen engagement and stakeholder participation.
“Barrages such as the ones supported by SBIP [Sindh Barrages Irrigation Department] are critical for the livelihoods and climate-resilience of the Sindh Province,” said Francois Onimus, who is spearheading the endeavor. “The project will increase the resilience of the canal systems that are fed from these barrages, reducing the adverse impacts of extreme floods and drought events.”