ISLAMABAD: The World Bank has given a nod to another installment of #450 Mn as loan for Pakistan to balance payments and budget financing.
The Washington-based lending agency approved three separate credits in the name of supporting the country’s financial inclusion strategy, expanding the social safety net and promoting tourism in Punjab. However, the Ministry of Finance’s interest remains in securing the loans to cushion its foreign currency reserves that have started depleting after the expiry of the International Monetary Fund programme.
Out of the $450 million, the World Bank would immediately disburse $300 million as a policy credit that would, for the time being, help keep the official foreign currency reserves above the $17 billion threshold.
The country’s external financing requirements have shot up due to larger than anticipated trade deficit and slowing down remittances.