WB postpones loan approval for Pakistan

Islamabad: Pakistan’s poor economic condition, political uncertainty and the refusal of the current government to fulfill the conditions to revive the IMF program, along with the delay in making these decisions have added to the country’s financial crisis and its global debt situation.

And to add to Pakistan’s open wounds, the World Bank (WB) has postponed the approval of two loans worth $1.1 billion until next fiscal year pending further steps. to the debt of the country’s power and climate.

The WB loan approval has been pending since June last year as Pakistan’s next fiscal year begins in April 2023.

“The biggest problem is the energy debt management plan and the cost review. These actions are pending on our side,” said one of the sources from the Ministry of Finance.

The government of Pakistan led by Shehbaz Sharif and the Ministry of Finance headed by Ishaq Dar still maintain that the current financial crisis is not their doing and it was done by the former former prime minister Imran Khan during his tenure in government.

And while Dar recently criticized the IMF for not accepting the ninth review and opening the next phase of the program, he said he was not concerned if the IMF team did not come to Pakistan for the review and he insisted that he no longer burdens people. with a lot of money; It seems that they now agree with the fact that Pakistan will definitely have to make difficult, difficult and unpleasant decisions to comply with the IMF’s preconditions, set for the revival of the program.

One of the main reasons for Pakistan’s compliance with the IMF’s terms is that all other loans from the WB and other international donors are directly linked to the IMF program, which calls on the government to implement more taxes, increase the price, increase. oil price but let the rupee value be determined by the market.

But the government of Pakistan, which is not only under the political pressure of the former Prime Minister, has dissolved all the provincial assemblies of Punjab and Khyber Pakhtunkhwa, demanding early general elections and threats to increase political instability in the country; the difficult decision for the renewal of the IMF program after April of last year by the coalition government attracted widespread criticism, and they fought in terms of politics.

And for this reason, the government is reluctant to make decisions that it does not like because it will further damage the political process and the support of the majority, which will directly affect their situation. , news and voting for the upcoming general election in the country.

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