{"id":84600,"date":"2023-01-19T18:33:00","date_gmt":"2023-01-19T13:03:00","guid":{"rendered":"https:\/\/tradebrains.in\/features\/?p=84600"},"modified":"2023-01-19T18:31:01","modified_gmt":"2023-01-19T13:01:01","slug":"pak-wb-loan-delay","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/features\/pak-wb-loan-delay\/","title":{"rendered":"World Bank delays USD 1.1 billion loan to cash-starved Pakistan until next FY"},"content":{"rendered":"<div class=\"trade-content_2\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-335824713\"><p><a href=\"https:\/\/tradebrains.in\/get\/telegram\/\"><img decoding=\"async\" class=\"alignnone wp-image-101992\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2023\/01\/telegram-channel-300x119.png\" alt=\"\" width=\"148\" height=\"59\" \/><\/a> <a href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN3Epgswxc--Aw?hl=en-IN&amp;gl=IN&amp;ceid=IN%3Aen\"><img decoding=\"async\" class=\"alignnone wp-image-123430\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png\" alt=\"follow-on-google-news\" width=\"222\" height=\"61\" srcset=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png 300w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-150x41.png 150w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news.png 468w\" sizes=\"(max-width: 222px) 100vw, 222px\" \/><\/a><\/p>\n<\/div><p>In a major blow to cash-strapped Pakistan, the World Bank has delayed the approval of two loans worth USD 1.1 billion until the next fiscal year, according to a media report.<\/p><div class=\"trade-content_7\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-627901834\"><!-- Composite Start --> \r\n <div id=\"M923760ScriptRootC1549812\"> \r\n <\/div> \r\n <script src=\"https:\/\/jsc.mgid.com\/t\/r\/tradebrains.in.1549812.js\" async> \r\n <\/script> \r\n <!-- Composite End --><\/div><p>The Washington-based lender has also opposed slapping a flood levy on imports, creating a new hole in an already ambitious USD 32 billion annual financing plan.<\/p><p>The Bank&#8217;s decision to withhold approval of the second Resilient Institutions for Sustainable Economy (RISE-II) loan worth USD 450 million and the second Programme for Affordable Energy (PACE-II) worth USD 600 million will be a major jolt for the government, The Express Tribune reported.<\/p><p>\u201cThe indicative date for (World Bank) Board discussion of the RISE-II project is the fiscal year 2024, which will start on July 1, 2023, and end on June 30, 2024,\u201d a spokesperson told the newspaper.<\/p><div class=\"trade-content_5\" id=\"trade-2832305528\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_2_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"7925020301\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div><p>The Bank\u2019s documents also showed that the PACE-II loan might be approved in the next fiscal year.<\/p><p>The government hoped to receive approval for at least the USD 450 million loan in January, which would have unlocked another USD 450 million from the Asian Infrastructure Investment Bank (AIIB) \u2013 which had pegged a USD 450 million loan with the approval of the World Bank\u2019s RISE-II.<\/p><p>The coalition government was already struggling to revive the International Monetary Fund (IMF) programme. The global lender&#8217;s latest decision, however, has created a hole of USD 1.5 billion against the government\u2019s annual financing plan.<\/p><p>Just before the revival of the IMF bailout package in August last year, the World Bank had agreed to enhance its lending envelope to cover a USD 300 million hole.<\/p><p>All this, however, seems to have been lost due to a lack of decision-making from the federal government.<\/p><p>The World Bank spokesperson added that \u201cpreparation of the RISE-II operation is underway and the World Bank is working closely with the government toward the implementation of supported reforms\u201d.<\/p><div class=\"trade-content-10\" id=\"trade-1455945937\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_3_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"2969612066\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div><p>For the current fiscal year, the government had hoped to receive USD 30 billion to USD 32 billion in foreign financing but the plans now appear unrealistic. The financing plan included loans worth USD 2.9 billion from the World Bank.<\/p><p>With the current foreign reserves standing at a mere USD 4.3 billion, Pakistan may not be able to reach June without support from foreign creditors.<\/p><p>The United Arab Emirates is expected to give the county a USD 1 billion loan and Saudi Arabia is also \u201cstudying\u201d the possibility of extending an additional USD 2 billion. The government, however, has not yet announced dates for the disbursements.<\/p><p>Sources told the newspaper that the World Bank has also communicated that it was opposed to the idea of slapping a 1 per cent to 3 per cent flood levy on imports that the government wants to impose to raise Rs 60 billion to Rs 70 billion in additional taxes and to contain imports.<\/p><p>The flood levy is part of the Rs 200 billion budget that the government is contemplating enforcing in a bid to revive the derailed programme.<\/p><p>The World Bank, however, sees further taxation on imports as a bad policy choice that is discriminatory, distortive and leads to a reduction in the production capacity of the country.<\/p><p>The lender has conveyed its decision to the federal government. As an alternative to imposing an import levy, the government has options like the withdrawal of custom duty exemptions that have been made available to certain groups \u2013 these exemptions are protected under the 5th schedule of the Customs Act.<\/p><p>The government has long been claiming that import duties have been imposed to discourage imports. But despite one of the highest import duty rates in the world, Pakistan\u2019s current account deficit (CAD) remains higher, which indicates that these duties have not helped contain imports.<\/p><p>The imposition of duties will further increase biases in favour of a domestic industry that has been overly protected and is not inclined to compete globally. The imposition of the 3 per cent duties on imports will also lead to missing the prior RISE-II policy actions of reducing import taxes.<\/p><p>According to The Express Tribune, the conditions for the RISE-II loan pertain to the country\u2019s fiscal and macroeconomic framework, involving the provinces too. The PACE-II loan aims to \u201creduce circular debt flow through reducing power generation costs, decarbonising the energy mix, improving efficiency in distribution, and retargeting electricity subsidies\u201d, according to the World Bank website. PTI SH PY PY PY<\/p><div class=\"trade-after-content\" id=\"trade-2132712822\"><div id=\"taboola-below-article-thumbnails\"><\/div>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({\r\n    mode: 'alternating-thumbnails-a',\r\n    container: 'taboola-below-article-thumbnails',\r\n    placement: 'Below Article Thumbnails',\r\n    target_type: 'mix'\r\n  });\r\n<\/script>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({flush: true});\r\n<\/script><\/div>","protected":false},"excerpt":{"rendered":"<p>In a major blow to cash-strapped Pakistan, the World Bank has delayed the approval of two loans worth USD 1.1 billion until the next fiscal year, according to a media report. The Washington-based lender has also opposed slapping a flood levy on imports, creating a new hole in an already ambitious USD 32 billion annual [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":45820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1697,31],"tags":[],"class_list":["post-84600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.5 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>World Bank delays USD 1.1 billion loan to cash-starved Pakistan until next FY - Trade Brains Features<\/title>\n<meta name=\"description\" content=\"In a major blow to cash-strapped Pakistan, the World Bank has delayed the approval of two loans worth USD 1.1 billion until the next fiscal year, according to a media report.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tradebrains.in\/features\/pak-wb-loan-delay\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"World Bank delays USD 1.1 billion loan to cash-starved Pakistan until next FY\" \/>\n<meta property=\"og:description\" content=\"In a major blow to cash-strapped Pakistan, the World Bank has delayed the approval of two loans worth USD 1.1 billion until the next fiscal year, according to a media report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tradebrains.in\/features\/pak-wb-loan-delay\/\" \/>\n<meta property=\"og:site_name\" content=\"Trade Brains Features\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TradeBrainsOfficial\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-19T13:03:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2022\/05\/The-world-Bank-Cover-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"854\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"PTI News\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2022\/05\/The-world-Bank-Cover-Image.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@TradeBrainsGrp\" \/>\n<meta name=\"twitter:site\" content=\"@TradeBrainsGrp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"PTI News\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/tradebrains.in\/features\/pak-wb-loan-delay\/\",\"url\":\"https:\/\/tradebrains.in\/features\/pak-wb-loan-delay\/\",\"name\":\"World Bank delays USD 1.1 billion loan to cash-starved Pakistan until next FY - 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