World Bank rebuts reports of delaying loans for Pakistan

The World Bank on Thursday rejected the media reports in which it was claimed that the bank had delayed approval of two loans worth $1.1 billion for Pakistan until next fiscal year.

Reuters on Wednesday reported citing a source from the finance ministry that the World Bank had delayed the approval of two loans for Pakistan worth $1.1 billion until the next fiscal year pending some steps on the country’s energy debt and tariffs.

The approval of the loans have been pending since June, said the source, declining to be named as they were not authorized to talk to the media.

“The major issue is the circular debt management plan in the energy sector and tariff revision,” said the source. “These actions are pending on our side.”

However, WB’s country director has termed all such media reports ‘unfounded’.

“The press reports that refer to a World Bank decision to delay approval of potential Bank operations in Pakistan are unfounded”, Country Director of the World Bank for Pakistan Najy Benhassine said on his official Twitter handle.