Asad Umar, federal minister, Pakistan, loan, Pakistan loan

World Bank delays $1 billion loan for Pakistan until next fiscal year

The World Bank has halted the release of two loans worth $1.1 billion to Pakistan until the next fiscal year 2-23-24, it emerged on Jan 18.

Reports said the Washington-based lender has delayed the approval of the second Resilient Institutions for Sustainable Economy (RISE-II) loan worth $450 million and the second Programme for Affordable Energy (PACE-II) worth $600 million.

A World Bank official told local media that the board discussion of the RISE-II project will be held in next fiscal year which starts on July 1, 2023 and ends on June 30, 2024.

The approval of the loans was pending since June last reportedly due to circular debt in energy sector and tariff revision. The global lander has also opposed imposition of “flood levy” on imports.

Shehbaz Sharif-led federal government has been making efforts to secure financing from friendly states and loan tranche from the International Monetary Fund (IMF) which has been pending since September last, as the foreign reserves has dropped to $4 billion dollars.

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