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World Bank to release $500 million to Pakistan soon

The credit, for privatisation and revenue stabilisation, is expected to be released by Tuesday

Web Desk June 22, 2015

Dar said his government is looking forward for closer economic cooperation between the international lender and Pakistan. PHOTO: AFP

The World Bank (WB) is all set to release $500 million credit aimed at supporting privatisation and revenue mobilisation efforts by Tuesday, Radio Pakistan reported.

During a telephonic conversation with the Finance Minister Ishaq Dar, WB Vice President Annette Dixon lauded the economic performance of the government despite a number of challenges and difficulties.

Dar said his government is looking forward to closer economic cooperation between the international lender and Pakistan.

The World Bank credit is aimed at supporting Pakistan’s efforts to reinvigorate growth and stabilise the economy.

However, the Washington-based lending has delayed the second tranche of the same amount that was due for energy sector reforms, underscoring the government’s lack of progress in turning around the energy sector over the last two years.

The World Bank’s refusal to approve the Development Policy Credit II tranche of $500 million for energy sector reforms before June 30 came on the heels of the Asian Development Bank’s decision to postpone the approval of a $400 million loan for the same purpose.

Read: World Bank approves $188m loan for Guddu barrage

On Saturday, the World Bank had separately approved $188 million loan for Pakistan to improve the reliability and safety of Guddu barrage. The programme aims to extend the life of the project by another 50 years.

COMMENTS (1)

For God's Sake, Dar! | 8 years ago | Reply Dar said his government is looking forward for closer economic cooperation between the international lender and Pakistan. Well Dar basically means that he doesnt expect this incessant loan taking to end any time soon. The World Bank is not an association you want to be in close relations with! Another thing is that privatisation is supposed to increase government money (privatisation means selling off government owned companies), while Dar is losing money over privatisation and instead needs loans for it! Irony, irony, irony.

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