$12 Billion Loan for Pakistan Approved by World Bank

Pakistan Finance Ministry has announced on Friday May 2, 2014, that the World Bank has approved a $12 billion loan for Pakistan. The loan will be given to Pakistan over a period of five years. Pakistan will pay 2 per cent interest rate on the loan with repayment scheduled over a period of 30 years.

The World Bank approved the loan under two separate programs. Under the first financial loan of one billion US dollars will used for managing the energy crisis and revenue support during the fiscal year. The amount will be transferred to Pakistan during the next few weeks.

Pakistan will receive $11 billion in the shape of project loans and budgetary support after the Country Partnership Strategy was approved.

The  Ministry of Finance said in a statement that the World Bank loans are purely concessionary in nature with repayment schedule spanning over a period of thirty years including five years grace period. According to the statement the  interest rate will be charged at the rate of 2 per cent per year.

The Finance Minister, in the statement, has congratulated the Pakistani nation on this success. The Finance Minister further said that the Country Partnership Strategy is aligned fully with the vision of Pakistan’s development challenges around the four ES “Energy, Economy, Extremism and Education.”

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Posted by News Pakistan Admin on May 3 2014. Filed under Business, Latest News, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.