WB refutes media reports claiming delay in approval of loans worth $1.1bn

January 20, 2023 (MLN): World Bank (WB) on Thursday rejected all the media reports that were claiming that the bank is intentionally delaying the approval of two loans worth $1.1 billion until the next fiscal year.

Taking to his Twitter handle, the bank’s Country Director for Pakistan Najy Benhassine said, “The press reports that refer to a World Bank decision to delay approval of potential Bank operations in Pakistan are unfounded.”

 The tentative Board approval dates of all of our proposed operations, as well as their amounts, are indicative, and the World Bank decides on the timing for sharing project proposals for Board consideration following due process and based on the proposed projects’ readiness, he added.

The press reports that refer to a World Bank decision to delay approval of potential Bank operations in Pakistan are unfounded. The tentative Board approval dates of all of our proposed operations, as well as their amounts, are indicative, and…(1/2)

— Najy Benhassine (@WBPakistanCD) January 19, 2023

A day earlier, news circulated in some sections of media that the multilateral lender had intentionally delayed the approval of loans which created a hassle to manage circular debt and tariff revision in the energy sector.

Cash-strapped Pakistan is in dire need of foreign inflows in the wake of melting reserves and as a result, the country is suffering from prevailing uncertainty.

In that scenario, such news only adds fuel to the fire.

Recently, Governor State Bank of Pakistan (SBP) Jameel Ahmed informed that Pakistan will observe the inflow of dollars from next week which will improve the position of foreign exchange reserves of the country.

Though the foreign exchange reserves of the country melted to a low level there are projects in the pipeline will that will help improve reserves, he said while speaking to the business community at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

At present, the total reserves held by the county stood at $10.44bn.

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