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According to AIIB, the objectives of the RISE-II program are to enhance the policy and institutional framework to improve fiscal management, and improve the regulatory framework to foster growth and competitiveness.
RISE-II is proposed to be supported under the COVID-19 Crisis Recovery Facility (the Facility) of the Bank and co-financed with the World Bank (WB) as a Development Policy Financing (DPF) under the WB's DPF Policy to further key institutional and policy reforms. AIIB co-financed RISE-I with WB in 2020, which was first in the proposed programmatic series to assist the Government of Pakistan (GoP) strengthen its polices for improved macroeconomic management and business competitiveness in the medium term.
The objectives of the second programmatic operation are to strengthen the country's macroeconomic management and support a more sustained and inclusive growth by mitigating the compounded socioeconomic effects of the COVID-19 pandemic and other exogenous and domestic shocks. The proposed operation will provide external financing to help GoP implement critical policy reforms to accelerate economic recovery and build the foundations for sustainable growth. Specifically, RISE-II seeks to further address key institutional and policy constraints for effective fiscal management and private sector investments to induce economic growth and reduce poverty by (i) enhancing the policy and institutional framework to improve fiscal management, and (ii) improving the regulatory framework to foster growth and competitiveness. Reforms supported by the programmatic series are relevant to current economic challenges and have already contributed to important outcomes of strengthening institutions for fiscal and debt management, broadening tax base and reducing distortions, eliminating trade barriers, and rationalizing power sector subsidies.
ENVIRONMENTAL AND SOCIAL INFORMATION
This Loan will be co-financed with the WB as lead co-financier, and the Program's Environmental and Social (ES) risks and impacts have been assessed in accordance with the WB's DPF Policy. AIIB's Environmental and Social Policy (ESP) was designed to apply to investment projects and has no provisions for its application to DPF operations. Therefore, as permitted by the decision of the AIIB's Board of Directors set forth in the Decisions to Support the Facility, the DPF Policy will apply to this operation in lieu of AIIB's ESP. This will ensure a harmonized approach to addressing the ES risks and impacts of the Program.
One of the Prior Actions could lead to adverse environmental effects in the long term, as tariff reforms will increase export opportunities for Small and Medium Enterprises (SMEs) and higher SME production, leading to more industrial pollution, worsening air and water quality, contaminating soils, and illegal industrial urban sprawl. Overall, Pakistan has adequate legislation, policy guidelines, and institutional mechanisms in place for managing environment and natural resources.
Program cost: USD 600 million
Financing Plan: • AIIB loan: USD 250 million • WB loan: USD 350 million (equivalent IDA credit)
PROJECT TEAM LEADERS
Asian Infrastructure Investment Bank
Ghufran Shafi
Senior Investment Operations Specialist,
Investment Operations Department
Region 2
World Bank
Derek H. C. Chen
Senior Economist
BORROWER
Government of Pakistan
Nasira Batool
Joint Secretary,
Economic Affairs Division,
Ministry of Economic Affairs,
IMPLEMENTING ENTITY
Government of Pakistan
Imdad Ullah Bosal
Finance Secretary,
Ministry of Finance,
ACCESS TO INFORMATION
You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html
ACCOUNTABILITY MECHANISM OF AIIB
The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html
The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html
