October 28, 2008	Tuesday	Shawwal 28, 1429

KARACHI, Oct 27: The World Bank has withheld payment on a $300 million programme meant to support Pakistan’s ailing economy and announced that the loan had been cancelled, a BBC report said on Monday.

Citing an announcement posted on the bank’s website, the report said the money was specifically meant to stabilise Pakistan’s economy.

It quoted a finance ministry official as saying that the International Monetary Fund had objected to the programme as, it argued, the World Bank had no authority to approve such a loan.

The report said the World Bank’s unexpected move was likely to hurt the ‘Plan B’ outlined by the prime minister’s adviser, Shaukat Tareen. The plan aimed at raising $4 billion over the next month from international donor. The cancellation forced him to activate his ‘Plan C’ and seek funds from the IMF.—Dawn Report