The World Bank today dismissed as baseless the media reports that stated the WB had put off approving a $1.1 billion loan for Pakistan until the following fiscal year.
An international news outlet claimed on Wednesday that the World Bank had postponed the approval of two loans totaling $1.1 billion for Pakistan because of the time it took to put policies in place to control the nation’s energy debt and tariffs. Since June, the loans have not yet been approved. The new fiscal year in Pakistan begins in July.
The circular debt management plan in the energy sector and tariff modification are both significant issues. The devastating floods that caused losses of more than $30 billion are still having an impact on Pakistan. Early this month, the State Bank of Pakistan’s foreign exchange holdings dropped to $4.3 billion, hardly enough for three weeks’ worth of imports.
State Bank of Pakistan (SBP) Governor Jameel Ahmad expressed confidence that Pakistan’s foreign exchange reserves position will improve at a gathering on Wednesday since the nation is anticipated to experience capital inflows in the coming days.
The SBP governor stated in his speech to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Karachi that “we are expecting inflows from next week onward, which will alleviate strain on our foreign exchange reserves.”
Ahmad reiterated his commitment to addressing the concerns of manufacturers and claimed that the nation’s foreign exchange reserves have reached very low levels. But as projects in the pipeline start to take shape, he predicted, “we will see a surge in reserves, which will increase our ability to support firms.”
