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International Monetary Fund. African Dept.

This Selected Issues Paper (SIP) uses the dynamic macroeconomic Sustainable Development Goals (SDGs) financing framework to estimate the infrastructure financing gap in São Tomé and Príncipe (STP). Human capital and infrastructure investments are key strategic priorities of STP’s National Development Plans.2 We will: i) estimate STP’s human capital and infrastructure gap in 2030 based on the authorities’ current policies; ii) estimate how active policies—improved domestic revenue mobilization, enhanced spending efficiency, and efforts to attract private investment—could reduce this infrastructure gap; and iii) determine the residual financing to be sought from STP’s development partners in grant financing.

International Monetary Fund. Middle East and Central Asia Dept.

Pakistan has made some progress towards meeting the Sustainable Development Goals (SDGs) in recent years, but additional spending is required. Spending in the areas of health, education, water and sanitation, electricity, and road infrastructure needs to increase gradually, reaching an additional 16.1 percent of GDP in annual spending by 2030, with about two-thirds corresponding to education and health. In the education sector, the priority is to increase enrollment rates and the quantity and quality of teachers, as well as to improve essential infrastructure. In health, additional spending should be geared towards increasing the number of medical personnel and reducing the share of “out of pocket” spending. Regarding electricity, roads, and water and sanitation, the challenge is to enhance both infrastructure access and quality. The substantial additional spending calls for multiple sources of financing, including by creating fiscal space through revenue mobilization and greater spending efficiency. Beyond resources, strengthening governance, capacity, and coordination among various stakeholders would help to increase spending efficiency and will be essential for achieving the SDGs.

International Monetary Fund. Asia and Pacific Dept