World Bank offers $2bn 4-year package
44
ISLAMABAD: World Bank Managing Director Sri Mulyani Indrawati has said that confidence of the public and private sector in Pakistan has been restored, and the bank considers Pakistan a reliable partner and is looking forward to increasing cooperation.
While appreciating the successful turnaround of Pakistan’s economy, she offered an IBRD assistance package of $2 billion over a period of four years.
During a meeting with Prime Minister Nawaz Sharif on Monday, she appreciated the economic turnaround made possible by the policies of the government and the macroeconomic stability achieved by virtue of these policies.
The prime minister thanked the World Bank for its support and said that priority areas of his government’s development strategy were energy, economy and education. He welcomed cooperation extended by the bank and development partners in these areas.
The prime minister spoke about initiatives for regional connectivity through rail and road links in the region. He informed Ms Indrawati about improving and building rail and road links from Karachi and Gwadar to Turkmenistan’s city of Tirmiz, where Turkmenistan, Uzbekistan and Tajikistan have borders at short distances. She assured him of the bank’s interest and support for the initiative.
During her meeting with Finance Minister Ishaq Dar, the bank’s development policy and measures taken by the government to reform the economy were discussed.
The finance minister sought World Bank’s cooperation on expediting fulfilment of donors’ pledges and preparation of projects in coordination with governments concerned.
The managing director and her team observed that Pakistan had made headway in promoting trade ties and connectivity with regional countries during the past two years.
Mr Dar acknowledged the cooperation of the World Bank in energy, projects for improving educational facilities and the Dasu hydropower project. “We hope that the World Bank will support Pakistan, along with other development partners, in the eradication of polio and immunisation of each and every child of the country,” Mr Dar said.
Published in Dawn, August 4th, 2015
On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play
Read more
On DawnNews
Comments (44) Closed
Aug 04, 2015 06:49am
What she is offering is peanuts. We should be looking at a $12 billion package. Our leaders cant think big.
Recommend
0
Aug 04, 2015 07:34am
“We hope that the World Bank will support Pakistan, along with other development partners, in the eradication of polio and immunisation of each and every child of the country,” Mr Dar said.
Can we do anything at our own with our own resources and effort? Why cannot we prioritize our budget and allocate enough funds for eridication of polio? There are so many ways to control and curtail wasteful spending. Do not be lavish in spending.
It is likely that if we need a chair tomorrow for F.M., we will go to World Bank and ask for financial support for that?
What a joke!
Recommend
0
Aug 04, 2015 07:38am
@Blue Saffron
Already Pak's 40% of tax revenue is being spent on debt servicing. You want it to move upward?
R.S. Menon, Bangalore
Recommend
0
Aug 04, 2015 07:39am
Seems more Taxes on public, thats how Mr Dar would be paying all those installments. in your govt our lives are not going to change , so why take this Loan.with previous loans which was only spent on repayment and Metro, no Dar we dont want this loan
Recommend
0
Aug 04, 2015 07:46am
1) Loan and debt are like cancer for any nation
2) Timriz (Tajikistan) link = Great for trade and tourism
Recommend
0
Aug 04, 2015 07:49am
World Bank and IMF are two organizations, which are in the business of giving big loans and enslaving citizens of the developing world (third world).
We must be very careful in excepting loans from these two International Loan Sharks.
I would suggest the New international Chinese dominated bank.
Recommend
0
Aug 04, 2015 07:51am
Minister for Loans Mr. Ishaq Dar is doing his job excellently. He is so kind that after every tranche of loan he congratulates nation that you are under more burden. Pakistan is going to be next Greece after the end of his current tenure.
Recommend
0
Aug 04, 2015 07:54am
Its such a interesting irony to see an indian or indian origin lady to approve a loan for pak development...indians are everywhere my friends..
Recommend
0
Aug 04, 2015 08:03am
@R.S. Menon
Thank you for your concern coming from a country that has 110% debt to GDP ratio close to Greece.
What I am proposing is a $12 Billion line of credit @ 3mo Libor convertible to fixed/convertible of any denomination at borrowers discretion with no prepayment penalty. Thusly it will have minimal impact on Pakistan's financials or cash flows.
Recall Pakistan's credit rating has improved by two notches and the highest in South Asia. That commands a premium.
Recommend
0
Aug 04, 2015 08:05am
Thank you World Bank, something is better than nothing.
Recommend
0
Aug 04, 2015 08:07am
Pakistan is the fastest growing economy in the world and is destined to become biggest economy in the near future, hence this confidence from World Bank and others who consider Pakistan as the safest investment zone on the planet.
Recommend
0
Aug 04, 2015 08:13am
No more loan for God sake. The only loan we should be interested in should be for Bhasha and other dam.If borrowing money contineues like this soon whole of the tax collection will be used for debt servicing.
Recommend
0
Aug 04, 2015 08:17am
Why no mention of the interest rate?
Recommend
0
Aug 04, 2015 08:20am
@Blue Saffron
We've got an economist here people
Recommend
0
Aug 04, 2015 08:28am
@Blue Saffron definitely child they give 12 billion..!! already our beloved brothers given 10 million dollar out of 46 billion dollar...!! now 12 billion don't forget our reserve is jus 19 billion dollar..!!
Recommend
0
Aug 04, 2015 08:33am
If the tax collection improve to say 4000 billion Rs., from the current 2200 billion Rs., there is no need for foreign loans required for deficit financing.
There are an estimated 3 million people who can be brought under tax net in addition to the current tax payers.
FBR need an overhaul and and the government need to put it act together in tax collection.
Recommend
0
Aug 04, 2015 08:36am
....... now that 'confidence' is restored, lets continue maintaining economic mayhem in under-developed countries like Pakistan....... !
Recommend
0
Aug 04, 2015 08:40am
finance dams by securing more funds.
Recommend
0
Aug 04, 2015 09:16am
All taxes spent on debt servicing. This PMLN doesn't even give provinces their promised rights as per NFC and spends on Punjab, I fear where this non-recurring receipt of loans goes. Govt. Said to keep accountability check on NAB, who will hold these people accountable.
Our lives on debt, our deaths on debt.
This is another addition of around Rs. 1110 debt on an individual of this fool nation.
Recommend
0
Aug 04, 2015 09:29am
@ Blue..World Bank is not a charity organization that it will give you whatever you ask. Thank your stars, $2B got approved.
Recommend
0
Aug 04, 2015 09:40am
@Blue Saffron - Debt servicing is not pea-nuts but hazzle nuts. If you want hazzle nuts, than debt servicing will be water melons. what do you want?
Recommend
0
Aug 04, 2015 09:55am
Good news and a welcoming initiative for economy.
Recommend
0
Aug 04, 2015 09:58am
@Blue Saffron : agreed that WB needs to up its underwriting criteria. Pakistan is the growth engine in South Asia going forward.
Recommend
0
Aug 04, 2015 10:04am
Don't take it Dar Sb! We'll inshaAllah manage without it. We already have a lot to pay off!
Recommend
0
Aug 04, 2015 10:09am
Pakistan's economy is going to be the largest next year in Real terms in the subcontinent. Therefore, it should command higher multiples in debt equity raises.
Recommend
0
Aug 04, 2015 10:22am
What a shame, the country feels happy when it is offered loan.
Recommend
0
Aug 04, 2015 10:22am
As much as getting funds for projects is good, I still feel that metro bus project is white elephant for the country.
Instead for less money, the entire bus fleet could have been upgraded and the existing roads would have been upgraded to facilitate this, even the route that has the metro bus more had excellent roads to begin with.
The first priority should have been power plants, delaying them further is only hitting the economy and the worst effected are the entrepreneurs and small business owners. However the politicians of Pakistan are completely detached from ground realities in the country, I'm sure half of them haven't experienced load shedding, or perhaps it's a minor inconvenience that's fixed by running generator.
I have read articles online that showing fake progress reports is nothing new in Pakistan so perhaps this news needs further analysis by an honest economic expert, preferably not on a talk show
Recommend
0
Aug 04, 2015 11:22am
World Bank Managing Director Ms Mulyani Indrawati is an Indian
Recommend
0
Aug 04, 2015 11:44am
@Vectra NO she is Indonesian Muslim and they are proud of their Sanskrit name unlike Pakistanis who thinks their forefathers and savers were Arabic breed .Only some traces of subcontinent culture is found only in their surname now a days.
Recommend
0
Aug 04, 2015 11:47am
World Bank needs to realize that Pakistan's financial capacity and apetite has increased ten fold and thus needs to step up to the plate with more capital than this.
Recommend
0
Aug 04, 2015 12:04pm
More loans? Good stuff!
Recommend
0
Aug 04, 2015 12:47pm
WB and IMF are organisations that work for themselves through corrupt political leaders........have the people of Pakistan benefited from such loans ?.....NO.
Recommend
0
Aug 04, 2015 12:50pm
Where will fund be spent ? How will PMLN pay back this money to World Bank ?
Answers are very simple. This money will be sent out to Swiss Bank accounts and Pakstanis will end up paying to World Bank in the form of devaluation of rupee and hyper inflation.
Recommend
0
Aug 04, 2015 01:04pm
This confidence will cost too much to the nation. Please stop taking loans and broaden Tax net to run state matters.
Recommend
0
Aug 04, 2015 01:55pm
@R.S. Menon it will peanuts to payback after CPEC and TAPC pipeline.
Recommend
0
Aug 04, 2015 02:12pm
I hope and pray that this money does not get spent on another expensive "jungla" metro/bus project(s). What is happening with the Basha Dam? Does anyone know?
Recommend
0
Aug 04, 2015 02:47pm
Which country has been able to get itself free of this compound interest debt? Hardly any. The reason is simple. The debt compounds at a greater rate than you can generate wealth. There is only one way to solve it. Stop acquiring more debt.
Recommend
0
Aug 04, 2015 02:50pm
Large economy, GDP this and that are just gimmicks. They don't mean anything. Building concrete structures with borrowed money doesn't mean your economy is growing. A large economy doesn't mean anything if nothing 'sticks' around. What is important how much 'wealth' a country generates and retains; not how many transactions it processes.
Just where did this mindset got rooted that borrowing and spending is a good idea is beyond comprehension.
Recommend
0
Aug 04, 2015 03:28pm
our govt is hell-bent in putting more taxes on us. record for a govt to attract countless loans in the shortest possible time of their regime. this money will be channeled in different personal loans of high profile govt officials, in particular the ruling family. and we will keep on absorbing more tax load.
Recommend
0
Aug 04, 2015 09:22pm
Pakistan = the next Greece in making.
Recommend
0
Aug 04, 2015 10:53pm
@Blue Saffron If only wishes could be horses my friend.
How do you propose the return the 12b?
Exports are as good as none, tax collections are laughable, investments in new industries is as good as zero.
We don't have money even to build the balance part of gas pipeline from Iran.
Our country is surviving on remittances and loans from various international agencies.
So who do you think will extend even credit facility to us?
Recommend
0
Aug 05, 2015 03:22am
Bismillah..Certainly FM Dar is trying to get what is possible to fund up the water, road and Power projects. Not a bad strategy. But, a problem is that when you target to fix every problem over 4 ys - several mega-projects are started, while non are finished. So try at least to start small projects first. Dams require facilitation, but can be peacefully be handled.
"Siemens, ABB, Samsung, Mitsu, Pana," etc have great green-tech initiatives, we can 'easily' buy - so for now focus on achievements when signing MoU's.
Press WB etc to pay more and start project planning earlier and be honest when you sell your 'ideas' or needs. When they see excavaters & men in coveralls, they feel confidence..Inshallah
Recommend
0
Aug 05, 2015 10:21am
As we go deeper in dept , our currency is so devaluated that no where you will find a 5000 rupee note , & last i head there could even be a 10000 rupee note too. God save our Nation from culprits evaluating our currency , destabilizing our country & those Fraudy Money Hungry Heartless Sharks & wish that all is paid back without any pressure on the civilians of this country & the money is actually being used for what it has been taken for.
Recommend
0
Aug 06, 2015 09:14am
The loan should be utilised for very purpose for which being granted
Recommend
0
