Islamabad, Jul 2 (IANS): The World Bank (WB) has approved US $500 million in budgetary support for Pakistan to address the immediate impacts of the COVID-19 pandemic, achieve macroeconomic stability and support reforms, local media said.

The money will help Pakistan strengthen fiscal management, promote transparency and private sector growth, and undertake foundational reforms in the energy sector to transition to low-carbon energy, the reports said on Wednesday, quoting a statement issued by the WB, Xinhua news agency reported.

These reforms are critical to build fiscal resilience and stimulate recovery from impacts of the COVID-19 pandemic, the statement added.

The money support for Pakistan has been approved under the "Resilient Institutions for Sustainable Economy" program.

Commenting on the development, Lead Country Economist for the World Bank Shabih Mohib said the program could help Pakistan attract new investments and spur economic recovery, adding that a foundation could be built for sustainable growth driven by the private sector.

The project will be financed by a US $250 million credit from the International Development Association and a US $250 million loan from the International Bank for Reconstruction and Development, according to the statement.