ISLAMABAD: The World Bank has delayed the approval of two loans for Pakistan worth $1.1 billion until the next fiscal year. The delay resulted from country’s pending energy debt and tariffs, as shared by source in a a finance ministry to the Reuters.
The source in the Finance division, on condition of anonymity shared with media that the approval of the loans have been pending since June 2022. Pakistan’s next fiscal year starts in April 2023. “The major issue is the circular debt management plan in the energy sector and tariff revision. These actions are pending on our side.”
The World Bank and the finance ministry did not immediately respond to requests for comment.
Earlier this month, the country’s forex held by the State Bank of Pakistan fell to $4.3bn. This amount is barely enough for three weeks of imports. While the country is still reeling from the impact of devastating floods that have led to losses of more than $30 billion.