World Bank approves $1 bln loan for Pakistan

ISLAMABAD: The World Bank approved one billion US dollars budgetary support for Pakistan. This support would be received by the next week.

Through this budgetary support, the government of Pakistan would be saving 10 per cent in overall debt, as the current debt interest rate is 2.5 per cent whereas after receiving of this amount, it would be reduced to 2 per cent. Therefore, through this, a saving of 10 per cent in debt interest would be accrued.

On Thursday, the World Bank approved two development policy credits (DPCs) for Pakistan, one pertaining to energy and other to revenues. The World Bank board granted the approval with full consensus and there were no dissenting votes, says a statement issued by the government late night.

The World Bank also approved a new five-year strategy for Pakistan under which it will extend $11 billion loans till 2019.