World Bank approves $500mn loan to help Pakistan strengthen fiscal management

The World Bank has approved a $500 million loan for Pakistan, which will be used to cover economic reforms and Coronavirus costs.

The World Bank has taken revolutionary steps to help developing countries respond to the coronavirus and has released a loan to Pakistan.

The $500 loan was approved by the executive directors of the World Bank’s board to promote financial assistance, transparency and private sector development, as well as reforms in the energy sector.

Of that  $500 million,  $250 million was provided by the International Development Association, while  $250 million was provided by the International Bank for Development and Rehabilitation.

Illango Patchamuthu, the World Bank’s director for Pakistan, said Pakistan was facing a major financial crisis due to the Coronavirus and its response to public health, social security and business support costs.

The program supports reforms to increase tax coverage and reduce tax policy stagnation, strengthen debt management, and implement urgently needed reforms to stabilize the energy sector.

The program will support the establishment of a carbon-free and financially stable energy sector, reform the banking sector, promote digital finance and formulate a competitive national tariff policy to promote trade.

The World Bank said that they are looking for public health initiatives around the world to ensure the supply of vital equipment and job security in the private sector and to facilitate their work.

The World Bank said it would spend $160 billion over the next 15 months to help protect the poor in more than 100 countries, support businesses and revive the economy, as well as subsidized loans through the International Development Association.