Article by:
Anna Leah Gonzales
MANILA – The World Bank (WB) approved a USD800-million Development Policy Loan (DPL) to help the Philippines strengthen its fiscal resilience, attract higher-quality private investment, and equip its workforce with the skills needed for better and more productive jobs.
In a statement Friday, the WB said the Philippines Growth and Jobs Development Policy Loan supports reforms to boost the economy by strengthening fiscal management, enhancing opportunities for private investment and innovation, and building labor-force capabilities.
These will be achieved through revenue and expenditure reforms; lowering the cost of doing business and promoting competition and investment; and reforms in skills, education, and innovation, it said.
The WB said the amount will be used to strengthen domestic resource mobilization and improve the efficiency of public spending to safeguard space for priority investments in infrastructure and human capital.
It will also be utilized to streamline regulations and reduce compliance costs for firms, promote competition, and advance policies that encourage private sector participation and foreign direct investments in key sectors.
"The World Bank is proud to continue supporting the Philippines' priorities — turning strong growth into more and better-paying jobs. By strengthening fiscal foundations, improving the business climate, and investing in human capital, this effort will unlock private investment and equip people with the skills they need to find jobs and thrive,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei.
“The result: quality investments, higher productivity, and real pathways to better livelihoods, especially for young people and women,” he added.
The reform program is being implemented by the Department of Education, the Department of Finance, the Department of the Interior and Local Government, the Securities and Exchange Commission, the Technical Education and Skills Development Authority, among others.
“These reforms aim to crowd in private investment, create more and better jobs, and drive the Philippine economy toward more sophisticated, higher-value activities," World Bank senior economist Jaffar Al‑Rikabi said.
In a separate statement, Finance Secretary Frederick Go said the financing of the World Bank is a strong vote of confidence in the Philippines’ growth path.
"Part of what makes this financing so important is our firm commitment to fiscal discipline, ensuring that every peso is spent wisely to create jobs, support businesses, and strengthen public services for the benefit of all Filipinos,” Go said.
“I thank the World Bank for their continued partnership in helping the Philippines achieve its growth and development goals,” he added. (PNA)
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