World Bank suspends $200 million loan to Pakistan

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World Bank suspends $200 million loan to Pakistan

ISLAMABAD: The World Bank (WB) has suspended a $200 million loan due to allegations of corruption in Balochistan Integrated Water Resource Management and Development Project.

The project was aimed to strengthen the provincial government’s capacity for monitoring and managing water resources and to improve community-based water management for targeted irrigation schemes in Balochistan.

The lending organisation had signed the project with the government of Pakistan three years ago.

Documents state that the project was supposed to mobilise communities to participate in the construction and rehabilitation of irrigation and drinking water supply facilities, flood protection infrastructure, watershed management, and environmental protection work as well as on-farm water management and agricultural productivity.

Moreover, the project beneficiaries were supposed to be small-holding farmers (up to 12.3 acres) and medium holding farmers (12.35 to 49.4 acres) engaged in irrigated agriculture.