Updated: Jun 15, 2021 6:12 PM IST
Islamabad [Pakistan]June 15 (ANI): Serious setback for Pakistanshrinks saving, two of its largest creditors – The World Bank (WB) and Asian development Bank (ADB) – deferred approval of another USD 1 billion The cost loans due to a delay in meeting some of the established conditions.
According to a report by The Express Tribune, The World Bank will approve the policy for $ 800 million loans June 28 with an original plan of $ 1.5 billion.
IN The World Bank decided to cut the loan after Pakistan “We were unable to implement some of the conditions set,” a source in the government said. Similarly, ADB has postponed approval of the second tranche of the $ 300 million loan for the energy sector program.
Earlier, Pakistan and The World Bank agreed on three loans, each for $ 500 million. However, the WB postponed approval of one loan and reduced the size of the other two. loans $ 500 million to $ 400 million each, sources told the Tribune.
Answering the question about size reduction loans, the representative of the local branch of the bank said that the reflected amount was agreed jointly by the government Pakistan and The World Bank…
According to Tribune, latency will not negatively impact PakistanRussia’s external sector position in the short term thanks to gross foreign exchange reserves of US $ 16 billion. However Pakistani rupee came under some pressure and lost 44 paise to 156.18 rupee per dollar on Monday.
Pakistan has already entered the “danger zone” of sovereign debt with total liabilities and debts of US $ 294 billion, or 109 percent as a percentage of GDP as of December 30, 2020 (ANI).