ISLAMABAD: The World Bank has delayed the approval of two loans for Pakistan worth $1.1 billion until the next fiscal year pending some steps on the country’s energy debt and tariffs, a finance ministry source told Reuters on Wednesday.

The approval of the loans have been pending since June, said the source, declining to be named as they were not authorised to talk to the media. Pakistan’s next fiscal year starts in April.

“The major issue is the circular debt management plan in the energy sector and tariff revision,” said the source.

“These actions are pending on our side.” The World Bank and the finance ministry did not immediately respond to requests for comment.

Pakistan is still reeling from devastating floods that have led to losses of more than $30 billion.

Foreign exchange reserves held by the State Bank of Pakistan fell to $4.3bn earlier this month, barely enough for three weeks of imports.

Published in Dawn, January 19th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Ill omens
Updated 12 Feb, 2025

Ill omens

One wonders whether institutional leadership realises the long-term ramifications of the ongoing "remaking" of judiciary.
Sunken dreams
12 Feb, 2025

Sunken dreams

ANOTHER tragedy has struck Pakistani migrants seeking a better future. A boat capsizing off the Libyan coast has ...
Hate in India
12 Feb, 2025

Hate in India

HISTORY shows that rulers use hate speech to provoke hate crimes and ‘othering’ among communities. Indian Prime...
IMF scrutiny
Updated 11 Feb, 2025

IMF scrutiny

Strengthening foundations of the economic superstructure will help make the economy competitive and boost growth.
Shadow voices
11 Feb, 2025

Shadow voices

OVER the weekend, another ‘open letter’ addressed to the army chief and attributed to former prime minister ...
Paradise at a premium
11 Feb, 2025

Paradise at a premium

PAKISTAN’S recent triumph at the New York Travel and Adventure Show 2025, winning the Best Partner Pavilion Award,...