Pakistan’s economy, which has gone into the abyss, is now going to get the support of another loan. The World Bank has approved a loan of $ 700 million (approximately Rs 6270 crore). This loan is part of a larger program, the objective of which is to stabilize the economy of pauperized Pakistan and improve the services of the country.
According to Reuters report, the World Bank said that this loan will be issued under the Public Resources for Inclusive Development – Multi Step Program Approach (PRID-MPA), which can release a total fund of up to $ 1.35 billion. This loan can be issued to Pakistan in several steps.
Where to spend how much money?
Of this loan, $600 million will be spent on the federal program and $100 million will be spent in support of a provincial program in southern Sindh province. This approval comes after the World Bank in August gave a grant of $ 479 million to improve primary education in Pakistan’s most populous Punjab province.
India will protest
It is noteworthy that an IMF-World Bank report uploaded by Pakistan’s Finance Ministry in November said that Pakistan’s fragmented regulations, opaque budget and political control are reducing investment and weakening revenues. Reuters report says that regional tension may arise regarding international funding for Pakistan, because India will oppose the loan given to Pakistan by the World Bank.
Pakistan running on credit
The entire economy of Pakistan is running on the basis of loans, because it has often been seen that sometimes it is given loan from IMF and sometimes from the World Bank, so that its economy improves. Apart from this, Pakistan has also taken loans from China and Saudi. Due to which the debt is increasing day by day.
Just recently in August, a grant of $47.9 million was received by the World Bank for primary education reforms in Punjab. Such situation in Pakistan clearly shows that Pakistan’s economy is running only on the basis of loans.
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