WASHINGTON: The World Bank on Thursday approved a $500 million interest-free loan for Pakistan to help stabilize the economy in the face of political and economic turmoil, and investor uncertainty.
Yusupha Crookes, World Bank country director for Pakistan, said policies adopted so far by the government had helped rebuild foreign exchange reserves and lowered inflation.
"However, the sharp deterioration of the global economy poses significant risks to exports, remittances and external financing. "This underlines the importance of Pakistan regaining economic stability and protecting its poorest citizens during the process," Crookes added.
The loan will support the Poverty Reduction and Economic Support Operation designed to support Pakistan's policy measures that promote stability and strengthen competitiveness by bolstering the financial sector and cutting business red tape.
Crookes said the loan will also go toward projects that protect the poor through targeted social programs, such as cash transfer programs for mothers and their infants.
The World Bank loan is part of broader financial support by multilateral institutions for Pakistan, which included a $7.6 billion loan from the International Monetary Fund.
Source: TOI
Yusupha Crookes, World Bank country director for Pakistan, said policies adopted so far by the government had helped rebuild foreign exchange reserves and lowered inflation.
"However, the sharp deterioration of the global economy poses significant risks to exports, remittances and external financing. "This underlines the importance of Pakistan regaining economic stability and protecting its poorest citizens during the process," Crookes added.
The loan will support the Poverty Reduction and Economic Support Operation designed to support Pakistan's policy measures that promote stability and strengthen competitiveness by bolstering the financial sector and cutting business red tape.
Crookes said the loan will also go toward projects that protect the poor through targeted social programs, such as cash transfer programs for mothers and their infants.
The World Bank loan is part of broader financial support by multilateral institutions for Pakistan, which included a $7.6 billion loan from the International Monetary Fund.
Source: TOI
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