The World Bank has said that the current year will be difficult for the world economy. The bank will provide US$ 2.4 billion loan to Pakistan and other poor countries.
The World Bank in a report apprehended that the new year will be difficult for the world economy and will especially hit the under developed economies, sources said.
The bank will extend US dollar 2.4 billion cash facility to Pakistan, Bangladesh, Columbia, Kenya, Macedonia, Philippines and other countries to meet food and other fiscal needs.
World Bank links economic reforms to $500 mn loan to Pak LAHORE: The World Bank (WB) is expected to give Pakistan a 'soft loan' of $500 million to tackle the sluggish economic conditions and counter the ever increasing problem of poverty, provided it carries out a slew of political and economic reforms under its loan guidelines.
According to the Daily Times, the loan will be transferred to Pakistan in a single transaction after the approval of the World Bank. The WB officials would meet on 15th February to finalise the terms and conditions of the loan.
The grant is being provided by the International Development Association (IDA) of the World Bank, which provides soft loans to developing countries.
It will be lending the amount ($500 million) on a 'nominal service charge' to Pakistan.
"The loan will be used to improve the infrastructure under the National Trade Corridor (NTC) programme to improve trade flows, lower transit costs and development," a source from the Pakistan Finance department said.
Under the agreement with the WB, Pakistan will have to eliminate subsidies on power sector by end June 2009 and also introduce procurement reforms in Public Procurement Regulatory Authority (PPRA).
Moreover, Pakistan will also have to improve social security network and to rationalise the development expenditures.