Connect with us

Hi, what are you looking for?

Latest News
• Bollywood actor Akshay Kumar tests negative for covid • Covid threat: IHC suspends routine work till May 16 • Human rights protagonist and journalist I. A. Rehman passes away at age 90 • Daska by-poll win testifies public support for Nawaz Sharif: Shahbaz Sharif • PTI blames RO for Daska defeat • GB politician Yahya Shah dies at 93 • PM to address the Special High-Level Segment of ECOSOC Forum on Financing for Development • CM Punjab launches food distribution scheme in Lahore, Faisalabad • 100 new ventilators being acquired to ease burden in Punjab: Dr Yasmin Rashid • Over 1,100 Sikh pilgrims issued visas to attend Vaisakhi festival • pilgrims will enter Pakistan on foot via the Wagah border • CDA misstated illegal construction of courts in F-8: IHC registrar • Benny Mario Travas appointed as new Bishop of Karachi • Sindh police initiative to build database of workers getting popular • International Civil Aviation Organisation audit team postpones its visit to Pakistan owing to Covid surge • Robbers break open over 30 lockers in Sakhi Hasan bank heist • IMF wants parliament to approve laws under deadlines • Fafen terms Daska by-poll generally transparent • FM Qureshi arrives in Berlin on two-day official visit • Bilawal tears up PDM’s show-cause notice • Swiss cases to be reopened: Sheikh Rashid • PM Khan approves plan to form south Punjab as separate zone • 5 Kashmiri fighters killed, 2 Indian soldiers injured in Indian occupied Kashmir • PSL 6 matches set to resume on June 1: PCB • Russia, China frustrating world response to Myanmar crisis: EU • Kyrgyzstan referendum shows support for presidential rule • Iran reports blackout at Natanz atomic site, terms it ‘nuclear terrorism’
News Alert
    • UK reopens pub gardens, salons, gyms, and non-essential shops  
    • Punjab govt. mulls over imposing complete lockdown in Lahore
    • Covid Updates: 4,584 cases reported while 58 deaths recorded in last 24 hrs
    • Currently, 75,266 cases are active in the country
    • The death toll reaches 15,501 in Pakistan
    • 1,772 people recovered in last 24 hrs
    • The current positivity rate is 11% in the country 


Money Gate Opens: After IMF Now World Bank Loans

ISLAMABAD: Pakistan and the World Bank on Friday signed over $1.3 billion worth of loan agreements including $600 million for budget support, oiling the government’s drying external financing pipelines after revival of the bailout package.

The amount includes $200 million lending for fighting locust attack – a project that faces resistance from the planning ministry due to fear of wastage of money on procurement of over 300 luxury vehicles and laptops. Pakistan also finally agreed to take $50 million loan for refugees after it initially refused to borrow the money for the purpose.

dollar stacks

As many as seven loan agreements were signed by Noor Ahmed and Najy Benhassine, the country director of WB, along with representatives of the provincial governments. Minister for Economic Affairs Makhdoom Khusro Bakhtiar witnessed the signing ceremony.

Pakistan’s almost dry financing lines have started opening after the approval of the $500 million loan tranche by the IMF this week.

The government is also going to borrow around $2 billion from the international markets next week by floating the US dollar denominated Eurobonds.

Pakistan’s total public debt is close to 90% of the size of the economy, which is far higher than the statutory limit set by parliament and also above the sustainable level.

The $1.34 billion financing will support the government’s initiatives in social protection, disaster and climate risk management, improving infrastructure for resilience, agriculture and food security, human capital development and governance, the Ministry of Economic Affairs said.

Bakhtiar described the country’s growing indebtedness as a symbol of “confidence of international financial institution and development partners on the progress and reforms being taken by the incumbent government”.

Both the sides signed a $600 million loan agreement for disbursement of money among the Benazir Income Support Programme beneficiaries. The programme will support the development of more adaptive social protection system that will contribute to future crisis-resilience among poor and vulnerable households in the country, the ministry said.

The $600 million loan has been taken for Ehaas Conditional Cash Transfer (CCT) programmes, namely Kafaalat, Waseela-e-Taleem, and Nashonuma. The financial inclusion and informal worker support initiatives of Ehsaas have also been included in the programme.

The World Bank’s Board of Executive Directors had approved $600 million loan on Thursday.

“Amid the Covid-19 pandemic, millions of families across Pakistan face economic hardship, particularly those working in the informal sector, who have no savings or are not covered by existing social safety net programs,” Benhassine said.

The Crisis-Resilient Social Protection Programme (CRISP) will facilitate the gradual expansion of Ehsaas social protection programmes to better reach informal workers through an innovative, hybrid approach that blends social assistance with promotion of increased savings that informal workers, particularly women, can depend on in the event of economic shocks. It will provide a platform through which the government can rapidly respond to support the most affected households during an economic crisis.

In the event of a crisis, a more flexible and dynamic social protection system can significantly reduce the time needed to respond to peoples’ needs as well as supporting a faster recovery, Amjad Zafar Khan, Task Team Leader for CRISP said.

Pakistan and the World Bank also signed the Locust Emergency and Food Security Project worth $200 million. Pakistan will take a $200 million loan from the World Bank to fight locusts but more than half of the amount will be consumed on things that do not directly relate to fighting the insects.

The loan money will be used to purchase of 310 double-cabin vehicles, 200 laptops and creating about 322 positions rather than helping the farmers. These vehicles are considered as luxury vehicles with high cost of Rs7.5 million per unit.

The Planning Commission had opposed the locust project on the ground that after the 18th Constitutional Amendment, the subject had been devolved to the provinces.

Pakistan and the World Bank also signed $200 million loan agreement for Khyber-Pakhtunkhwa Human Capital Investment Project. The objective of the project is to improve availability, utilisation and quality of primary healthcare services and elementary education services in four districts of K-P that have been hosting refugees ie Peshawar, Nowshera, Haripur and Swabi.

Another loan of $200 million has been taken for Sindh Resilience Project.

For Balochistan Livelihood and Entrepreneurship and Balochistan Human Capital Investment Project, the $86 million deal has been signed. These projects aim to promote employment opportunities for rural communities; achieve sustainability of enterprises and improve utilisation of quality health and education services in various districts of Balochistan.

For supporting institutional interventions for management of refugees, Pakistan and the World Bank signed $50 million loan agreement. The loan had been pitched by the World Bank, which Pakistan reluctantly accepted.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *




Region-Israel relation normalization depends on the Israel-Palestine peace process, sys Saudi FM.

Latest Updates

Federal Minister for Science and Technology Fawad Chaudhry made the announcement of moon sighting evening to be April 13 and said that first Roza...


$42k fine imposed by Russian Court after a hearing that was seen on video by Social Media Top officials.

Social Issues

Pakistan open up its National Security discourse to allow participation by a wider swathe of the country’s intelligentsia.

Copyright © 2021 The Truth International