Days after IMF’s $500 Million aid, Pak economic crisis continues; World Bank loans over $1 Billion
28 March, 2021 | newsx bureau
Earlier this week, the International Monetary Fund (IMF) had agreed to release the next portion of the $500 million loan for Pakistan after approving four pending reviews of the country's economic ...
The World Bank has signed fresh agreements with Pakistan worth USD 1.3 Billion with cash-strapped Pakistan to help the country’s foreign exchange reserves and provide support to its social sector programmes. The decision comes days after IMF cleared its USD 500 mn to the country after reviewing the country’s economic progress.
A total of 6 agreements were signed on Friday consisting of a loan agreement worth USD 1.336 Billion, which also includes a $128 million grant to support Pakistan’s government initiatives in social sectors, climate and disaster management, improving infrastructure for agriculture, resilience, human capital development, governance sectors and agriculture, the Pakistani newspaper ‘Dawn’ reported.
Noor Ahmad, Secretary of the Ministry of Economic Affairs signed the agreements on behalf of Pakistan’s government. online agreements were signed by representatives of Kyber, Sindh, Pakhtunkhwa and Balochistan.
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The country director of the World Bank signed the agreement on behalf of the organisation. A day before, the loan was signed by the board of executive directors of the Bank under its International Development Association (IDA) programme. The first million loan agreement was signed for the assistance in the Crisis-Resilient Social Protection Programme (CRSP) to substructure the development of a more adaptive social protection system that will further contribute to future crisis-resilience and management among vulnerable and poor households of the country.
Earlier in February 2021, Finance Minister of Pakistan Dr Hafeez Sheikh presented a report on the Fiscal Policy and Debt policy of the country in which he revealed that the country’s total debt stands at Rs 36.5 Trillion with Rs 11.5 Trillion borrowed in the last two years.