Pakistan Government seek yet another loan from the World Bank
The government has requested the World Bank for a loan of $600 million to roll out an innovative hybrid social protection scheme to support its aspirations around risk mitigation and financial inclusion among the poor and informal workers.
The scheme will blend social assistance with social risk mitigation elements to help reduce the vulnerability of the missing middle to shocks under the ‘Pakistan Crisis-Resilient Social Protection’ programme, according to a new World Bank document released on Saturday.
According to the report compiled by a local media outlet, the basic model will be a contributory savings scheme with matching incentives, with a short-to-medium term horizon for withdrawals. It will build on lessons from similar programmes in other countries. Individuals would not be penalised for early withdrawal of their own savings but will not have access to contributions before reaching the minimum time commitment.
This would allow funds to accumulate for later release either on an emergency basis during a crisis or at other significant life events like ageing, illness or death, after this period.