Pakistan approaches World Bank for $300 million Loan

Pakistan approaches World Bank for $300 million Loan

ISLAMABAD: Pakistan government has approached World Bank for a loan of $300 million.

Federal Minister for Finance Ishaq Dar has signed and dispatched official letter to World Bank’s President Jim Yong Kim, requesting the WB for granting approval for $300 million programme loan for Pakistan after implementing tough conditions including taking steps related to money laundering and Benami transactions with the approval of the Parliament as well as moving towards establishment of Pakistan Infrastructure Bank (PIB).

For getting approval of $300 million programme loans expected to be considered by the WB’s board mid of next month (March 2017), Pakistan has implemented ten conditions including converting State Life Insurance Company (SLIC) into company as corporatization process is underway to make it National Life Insurance Company (NLIC).

According to official letter sent out to WB’s Headquarters at Washington DC, Pakistan’s Finance Minister Ishaq Dar wrote that the government continues to pursue a comprehensive programme of economic and financial sector reform.

These reforms are intended to spur investment, increase financial inclusion and accelerate economic growth that is inclusive, board based and sustainable.

The government is now pursing Pakistan Finance for Growth Development Policy Financing (FGDPF), which is an IDA Development Policy Credit in the amount of $300 million.

The International Development Association (IDA) credit will provide needed external and financial and signal our determination to implement sustainable economic and financial sector reforms.

This Letter of Development Policy sets out the government’s key policy action to be supported by this operation.