Government World Bank's dialogue on policy based lending continues: Spokesman

A spokesman of Ministry of Finance Saturday contradicted a news item appeared in a section of the press that the World Bank has declined Government's request for a policy loan linking the lending support with the exchange rate adjustment.

“It is clarified that the report is incorrect and reflects lack of understanding of the subject and the level of engagement between the Government and the World Bank. The Government of Pakistan and the World Bank remain 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 Finance Division spokesman said in a rebuttal.

During this fiscal year the Government of Pakistan has not so far officially communicated any specific request for a policy-based loan from the Bank. Therefore, the question of denial by the World Bank for the policy loan does not arise. Furthermore, it is important to note that exchange rate policy does not fall in the domain of the World Bank. Rather maintaining the exchange rate stability is a sovereign decision of the Government of Pakist an.

Therefore, the claim made by the press that the Bank has declined Government’s request for a policy loan is grossly incorrect, the spokesman said.

He added, the Government would request that due care be taken while reporting on such matters as any misreporting based on lack of understanding can potentially damage perceptions with regard to positive outlook of the economy as well as investors' confidence. This is necessary to protect the hard earned economic gains achieved over the last four years and to carry the growth trajectory of the economy forward.