DOF, World Bank seek faster project financing
The Department of Finance (DOF) and the World Bank have agreed to work together to speed up the processing of financing for development projects in the Philippines.
Pakistan is exploring the possibility of securing $1.5 billion in financing through World Bank Group guarantees, as part of efforts to diversify its external funding sources, according to the Finance Division. Finance Minister Muhammad Aurangzeb held discussions with Alvarez & Marsal during the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, to explore combining a World Bank policy-based guarantee with Multilateral Investment Guarantee Agency (MIGA) coverage.
The goal is to attract financing at competitive rates, with the potential financing target of approximately $1.5 billion, pending guarantee envelope and transaction structure considerations. Aurangzeb advocated for leveraging existing Development Policy Operations (DPOs) to sidestep the delays associated with negotiating a new framework.
The meeting also addressed ongoing advisory work on privatizing DISCOs and Pakistan's economic outlook, including progress under the IMF program, tax reforms, three consecutive years of primary surpluses, and foreign exchange reserves of around $21.6 billion. Discussions touched upon the regional conflict's impact on energy, inflation, and food security, as well as strategies to ensure energy supplies and prepare for winter demand.
Aurangzeb underscored export-led growth, strengthening IT exports, improving goods competitiveness, and debt sustainability to reach a BB sovereign rating. He also discussed privatization, airport outsourcing, potential US EXIM Bank financing, and strengthened US support. The finance minister met with a Lazard delegation to explore mining investment, financing diversification, and Pakistan's sovereign credit outlook, welcoming proposals for blended finance, sustainability-linked loans, guaranteed Sukuk, and debt swaps to widen funding sources and improve financing terms.
Both sides emphasized the importance of cost discipline, alignment with the medium-term financing strategy, and building economic resilience to support progress toward a BB rating category.
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