Pakistan suffers major setback as World Bank cancels support loan for Pakistan

Pakistan suffers major setback as World Bank cancels support loan for Pakistan

VoM News Desk | December 15, 2024 | 04:30 PM IST | Pakistan News, World | Follow on Google News

Pakistan suffers major setback as World Bank cancels support loan for Pakistan

World Bank cancels support loan for Pakistan: The bankrupt Pakistan has suffered a massive setback, as the World Bank has cancelled a budget support loan to Pakistan for failing to complete senstive conditions within the timeframe as accorded.

What were the Conditions, which Bankrupt Pakistan couldn’t fulfill?

The certain conditions were put by the World Bank to Pakistan to complete in time limit, which were not fulfilled by the Pakistan.

These conditions include, revising the purchase power agreement in relation to strategic China-Pakistan Economic corridor, holding talks with the Independent Power Producers, especially Chinese power plants built under CPEC.

No significant work was done regarding reduction in electricity prices, reduction in increas of circular debt, tackling the inefficiencies in power distribution companies.

Pakistan miserly failed to fulfill the conditions. This step of global lender, could be a hazardous for the bankrupt pakistan and its economy. As Pakistan has almost exhausted it’s loan quota, now if, no support budget plan is accorded, it would be a severe, and suicidal for Pakistan’s economy.

The world Bank spokesperson stated that no budget support is on cards for the current GBfiscal year, ending in June month of this year.

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How the Loan was Cancelled?

The cashtrapped nation was eager to avail the support budget plan, which was nearly lg 500 to 600 million USD, meant for Pakistan under the Affordable and Clean Energy program, abbreviated as PACE-II, as per sources within the government.

Initially, the loan amount was at 500 million USD, which was later increased to 600 million USD, which was to help external financing gap of Pakistan. Through the pace initiative,

As the PACE initiative was approved by the global lender in 2021, and around USD 400 million were released, in its first tranche.

The second instalment was to be provided on metting the certain conditions, which the bankrupt country fails to do so.

VoM News Desk

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