Pak, WB sign loan agreement worth $787mn

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ISLAMABAD

Pakistan on Tuesday signed loan agreement worth $787 million with the World Bank to revamp water supply and sewerage system in the country. Federal Minister for Economic Affairs Hammad Azhar signed the agreement with the World Bank while its country director in Pakistan Patchamuthu Illangovan was also present on the occasion. Sources said that $382mn have been allocated for Yellow Line project and $40 mn will be spent to revamp water supply in Karachi.

$70mn have been allocated for Khyber Pakhtunkhwa integrated tourism project. Earlier on November 22, Federal Minister for Economic Affairs Hammad Azhar had said that the World Bank had restored budgetary support to Pakistan after more than three years. Hammad Azhar in a tweet had said that the development comes after Pakistan showed improvement in economic indicators.

The World Bank, and the Asian Development Bank (ADB), had suspended budgetary support to Pakistan in 2017 due to rising macroeconomic imbalances that had arisen in the economy at that time. The ADB had already reinstated the budgetary support two months ago. The World Bank after a gap of almost four years had decided to restore Pakistan’s budgetary support.

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