World Bank has stopped two loans worth $ 75 million for Pakistan

Loans from the World Bank were given as ‘budgetary support loans’, but the World Bank issued loans due to non-compliance with the general sales tax (GST) disagreement on services between provinces. Delayed. Pakistan’s budget support will be further delayed due to a delay in debt supply, which has been closed for four years due to the decline of macroeconomic indicators.

World Bank loans

According to the World Bank’s official documents, a board meeting will be held on March 19 to approve a $ 50 million development policy credit under the Resilient Institutions for Sustainable Economy program. Similarly, another $ 25 million policy credit under the Securing Human Investments to Foster Transformation (Shift) program has been postponed.

Ministry of Finance sources told the Express Tribune that loans approved under the ‘Rise’ and ‘Shift’ programs have been postponed for at least two months. This is the second time the World Bank has deferred its loans.

According to sources, if Pakistan succeeds in building consensus among all stakeholders then the World Bank Board may consider approving the loan in May or June. Delay in acquiring a $ 75 million loan will also affect external financing projections for the current fiscal year.

Asked about the delay in lending, the World Bank spokeswoman said negotiations with the authorities on “raises” and “shifts” were underway and that good progress was being made in this regard, as the loan program (Rise) And the shift), the World Bank’s executive director will consider them.

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One of the government officials said most of the pre-defined conditions under the ‘Rise’ program have been implemented while the rest are in process. He hoped that the remaining terms would be fulfilled in the coming months and the World Bank would approve the loans in May.