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World Bank to provide $2 bln loan to Pakistan

“The Bank Group plans to provide up to two billion dollars in credits during this fiscal year to support economic growth and the government’s poverty-focused programs,” said WB’s country director for Pakistan Yusupha Crookes.

“These projects will support the immediate challenges in education, health, safety nets and community-led development, while laying the foundation for investment in infrastructure to foster long term growth and job creation,” he added.

The statement came as the bank’s Managing Director, Ngozi Okonjo-Iweala, concluded her two-day visit of the Islamic country.

The statement also came a day after the Asian Development Bank announced that it will provide a 1.5-billion-dollar to Pakistan for the improvement of infrastructure.

The loans are expected to help Pakistan which is seeing an economic melt down due to last year’s political crisis and constant terrorist attacks across the country.

With the foreign currency reserves eroding rapidly, gross domestic product growth growing by two percent and inflation more than 25 percent, the country has gained approval from the International Monetary Fund (IMF) of a package of 7.6 billion dollars to support its economy.

“We are committed to working with the government during this difficult time, protecting the most vulnerable groups and carrying out critical reforms that will set the basis for higher, inclusive and sustainable economic growth,” Okonjo-Iweala said.

“The World Bank Group is committed to supporting Pakistan in line with its vision for equitable progress and rapid development.”