World Bank approves $1bn loan to Pakistan

  • AFP, Islamabad
  • Updated: May 02, 2014 20:21 IST

The World Bank said on Friday it had approved a $1 billion loan for Pakistan and "envisages" another $11 billion package spanning five years.

The loans are meant to support Pakistan's struggling energy sector and bolster its efforts to increase growth and investment and arrest poverty.

"The World Bank Group approved a package of assistance worth $1 billion to support Pakistan's economic reforms on Thursday," the bank said in a statement.

"The assistance package consists of two development policy credits (DPCs) to support the government of Pakistan's efforts to improve the power sector, and reinvigorate growth and investment for reducing poverty and building shared prosperity," it said.

The bank also said it was "envisaging" $11 billion worth of loans under a new country partnership strategy for Pakistan over the next five years, covering fiscal years 2015 to 2019.

The government, however, said the World Bank had approved the $11 billion partnership strategy to tackle its four main challenges of energy, economy, education and fighting extremism.

"The other landmark achievement of the day was the approval of country partnership strategy under which Pakistan will get US$11 billion in the shape of project loans and budgetary support," it said.

Finance minister Ishaq Dar has "congratulated the whole nation on this success and observed that the country partnership strategy is aligned fully with the vision of Pakistan's development challenges around the four Es 'Energy, Economy, Extremism and Education', based on the manifesto of the Pakistan Muslim League (N) and its commitment to the nation," it said.

Philippe Le Houerou, vice president for the Bank's South Asia region, praised Pakistan for stabilising its economy and starting reforms in the power sector.

"The government of Pakistan deserves appreciation for stabilising the economy, initiating reforms in the power sector as well as revenue mobilisation and drawing in the private sector for spurring growth", Le Houerou said in a statement.

Cash-strapped Pakistan, plagued by a bloody homegrown Taliban insurgency, is battling to get its shaky economy back on track and solve a chronic energy crisis that cripples its industry.

From Around the Web
Sponsored by Revcontent

also read

US Army to send 800-member aviation unit to Afghanistan
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome