The Ministry of Economic Affairs has strongly refuted claims made in a report by the Express Tribune on December 13, 2024, which suggested that the World Bank had canceled a loan for Pakistan. The ministry called the article a “misrepresentation” and clarified that the loan in question was never approved by the World Bank Board nor signed by the Pakistani government.
In a statement, the ministry explained that the headline in the article referring to the cancellation of the loan was misleading and false. The statement also pointed out that the report was published without consulting the Ministry of Energy or the Ministry of Economic Affairs for their perspective.
“The World Bank continues to be Pakistan’s largest multilateral development partner, with an active portfolio of 53 projects worth US$ 15.33 billion,” the ministry noted. It further stated that since 1950, the World Bank has provided over US$ 46 billion in financial assistance to Pakistan, supporting critical sectors such as energy, social safety nets, and human development.
The ministry provided details of ongoing initiatives, including the Securing Human Investments to Foster Transformation (SHIFT-I & II) programs worth US$ 900 million, aimed at strengthening the country’s health, education, and civil registration systems, as well as the Resilient Institutions for Sustainable Economy (RISE-I & II) programs, which provide US$ 850 million for fiscal management and competitiveness reforms.
One of the key programs, the Program for Affordable and Clean Energy (PACE), worth US$ 400 million, was initiated in 2020. The first phase, PACE-I, which aimed to reduce circular debt, decarbonize the energy mix, and improve distribution efficiency, was successfully completed. However, the second phase, PACE-II, was never initiated as the World Bank’s focus shifted toward investment projects like the Dasu hydropower dam.
The statement further clarified that the PACE-II program was never part of the country’s budget estimates for fiscal years 2022-2024 and had no impact on Pakistan’s external financing or budgetary support from the World Bank.
The ministry emphasized that Pakistan’s recent engagement with the World Bank has been focused on infrastructure projects, with over US$ 2 billion in disbursements secured in the last two years. The ministry is also negotiating additional projects worth approximately US$ 1.5 billion this fiscal year.
The Ministry of Economic Affairs condemned the Express Tribune article for undermining Pakistan’s relationship with the World Bank, asserting that it was an attempt to create unnecessary doubts about the country’s ongoing development efforts. The government reiterated its commitment to its strong partnership with the World Bank, particularly in key areas of energy and infrastructure reform.
