Ministry seeks 3 budget support loans of $1.5b before June end

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Islamabad

The World Bank has set tough conditions for $1.5 billion lending such as increase in electricity rates, introduction of new power and tax policies, putting the government in a tight spot that is already seeking a review of the International Monetary Fund (IMF) deal.

The finance ministry was seeking three budget support loans totalling $1.5 billion from the World Bank before the end of June, sources told The Express Tribune.

The loans are part of the overall $27 billion external financing requirement for the current fiscal year, said the finance ministry sources.

The government has requested the World Bank to provide $500 million each under the Resilient Institutions for Sustainable Economy (RISE-II), Securing Human Investments to Foster Transformation (SHIFT-II) and Programme for Affordable and Clean Energy (PACE), said the sources.

Outgoing Finance Minister Hammad Azhar on Friday chaired a meeting to review the status of conditions that the World Bank had proposed for giving the loans.—INP