World Bank has cancelled Pakistan’s $250 Million Emergency Loan
1. The World Bank has cancelled a $250-million emergency relief loan for Pakistan after both sides could not converge on a new macroeconomic framework due to deteriorating external-sector condition of Pakistan.
2. The loan was aimed at strengthening the regulatory and institutional framework to cope with climate change and disaster risk in Pakistan and increase financial capacity to respond to natural disasters.
3. Loan negotiations have been cancelled, according to government officials.The decision to cancel the policy loan came following postponement of visit of a World Bank team to Pakistan.
4. The World Bank had planned to send a mission in the third week of November but it suddenly scrapped the trip a day after bailout talks between Pakistan and the International Monetary Fund (IMF) failed.
5. However, the World Bank’s spokesperson told The Express Tribune in November that the mission cancellation decision had nothing to do with the IMF talks. She stated that the visit had been cancelled due to internal reasons.
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