Wet flour in poverty! Pakistan reached World Bank to beg, got a big shock

World Bank to Pakistan : The World Bank has given a severe blow to Pakistan by fully implementing the saying ‘Dough is wet in poverty!’ The World Bank has canceled the budget support loan of more than 500 million dollars given to Pakistan. The bank has attributed the reason behind this to Pakistan’s failure to fulfill many important conditions within the stipulated time limit.

According to Pakistan’s Express Tribune, the World Bank’s essential conditions included revising the purchasing power agreement between China and Pakistan regarding CPEC. This international organization based in Washington also announced that no new budget support loan will be sanctioned to Pakistan during the current financial year.

What did the World Bank spokesperson say?,

“No budget support is planned for the current fiscal year, which ends in June 2025,” a World Bank spokesperson said. For this fiscal year, the IMF has identified an external financing gap of $2.5 billion that needs to be addressed through new loans. It is noteworthy that the World Bank is an international financial institution. The World Bank brings together 189 member countries of the world, which are responsible for the institution’s financing methods and allocation of funds.

what about pakistan PACE Program,

Government sources in Pakistan have revealed that the World Bank has canceled a loan of $500 to $600 million given to Pakistan under the Affordable and Clean Energy Program (PACE-II). Quoting news agency ANI, it has been told that the loan amount, initially fixed at $500 million, was later increased to $600 million, so that the gap in loans taken from outside Pakistan could be bridged. The PACE program was approved by the World Bank in June 2021, with the first tranche of US$400 million already released.

Pakistan did not fulfill these conditions

The second tranche of Pakistan’s Pace program was dependent on fulfilling several conditions, such as negotiating with all independent power producers (IPPs), especially with Chinese power plants built under CPEC. In which it was found that no progress has been made in renegotiating agreements with power plants related to CPEC.

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