World Bank has not suspended support Loans: Finance Division Spokesman

Islamabad, September 27, 2017 (PPI-OT): Spokesman of the Finance Division has strongly contradicted a report titled : “WB suspends support loans for Pakistan”. A section of media carried the report on 25th September and it said that the World Bank had suspended program loans/budget support and disqualified the country for IBRD eligibility. The spokesman said that this report is totally incorrect. The fact of the matter is that there is no such suspension of support from the World Bank. Indeed, the Government of Pakistan and the World Bank continue to remain actively engaged on an ongoing basis on various projects and programs including policy based lending support within the framework of Country Partnership Strategy 2015-19 of the Bank.

The spokesman said that despite challenges, the macro-economic conditions in the country remain stable. FX reserves as on September 22nd, 2017 were $20.051 billion while SBP reserves were $14.133 billion adequate to cover about 3 months of imports well above the threshold defined by the Bank for IBRD eligibility.

Therefore the question of suspension of IBRD support does not arise at this point in time. Last two months economic data show a strong comeback of economic performance, exports increased by 17.9 %, remittances by 13 %, Tax Revenue by 21.5 %, and FDI by 154.9 %. With these positive trends strengthening in coming months, the overall macroeconomic condition will improve substantially. The spokesman said that due caution is to be exercised while reporting on such matters. This is necessary to protect the hard earned economic gains achieved over the last four and a half years and to carry the growth trajectory of the economy forward, he said.

For more information, contact:
Principal Information Officer,
Press Information Department (PID)
Tel: +92-51-9252323, +92-51-9252324
Fax: +92-51-9252325, +92-51-9252326
Email: piopid@gmail.com
Website: www.pid.gov.pk

Leave a Reply