Exclusive – World Bank Agrees To Provide Loan of $800 Million:
The World Bank approves the loan of $800 Million to finance the budget of Pakistan. This is because Pakistan is facing a shortage in its budget after the federal government has accepted the conditions including the increment in the rates of electricity so that they could lessen the overall debts as well as allowing the targeted decrease. In fact, this action will increase poverty in the country even more.
In this regard, the directors of the World Bank agree to give a loan to Pakistan especially for developing two campaigns. These include, (PACE), a special program of Pakistan that provides cost-effective and transparent energy. Secondly, a program for the security of the Human Investments in order to support the transformation. For these two programs, the World Bank approves the loan to Pakistan.
The Bank Approved the loan only when Govt. Accepted the prior conditions:
The directors of the World Bank approve the Loan of $400 million when the government of Pakistan accepts the conditions. In fact, the conditions of the board include the decline in the electricity generation price. Moreover, competitive commands for the new projects regarding power generation.
Furthermore, the board demands an increment of Rs 1.95 per unit in power tariffs. Moreover, regarding PACE Loan, the World Bank demands enhanced financial viability in the power department and fosters the transitions of the country regarding low-carbon energy.
According to another condition, the government of Pakistan will make sure the authenticity of the boards as well as the management and organizers of all the distribution agencies. In this regard, according to the World’s Bank, “the rationalization of the power tariffs might have a negative impact on poverty. In this case, people have to bear the load to lessen the overall debt. As a matter of fact, this is a limited impact”.
The World Bank provides loans to Pakistan because the country is facing a difficult situation because of the budget deficit. However, the Board of directors implements some strict conditions on the government before approving this loan.
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