WASHINGTON, June 11: The World Bank has approved a structural adjustment credit interest-free loan of 395.5 million SDRs, or $500 million, for Pakistan.

This is said to be the largest WB loan received by Pakistan so far, which was given a $350-million credit last June as part of the structural adjustment programme.

The new loan was approved by the bank’s board of directors at a meeting on Tuesday, and an agreement relating to it was due to be signed in the evening.

The loan will go to support the Pakistan government’s structural reform agenda, and sectors picked by the World Bank for utilization of the loan include governance reforms and human development.