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World Bank cancels USD 500 million loan to Pakistan
The Daily Guardian
|December 14, 2024
The World Bank has cancelled a budget support loan of over USD 500 million to Pakistan after Islamabad failed to meet key conditions on time, including the revision of power purchase agreements under the China-Pakistan Economic Corridor (CPEC), as reported by The Express Tribune.
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The Washington-based lender has also announced that it will not provide any new budget support loans during the current fiscal year, which could affect the government's expectation of receiving USD 2 billion in fresh loans. A key reason for this decision is that Pakistan has largely exhausted its loan quota as reported by Express Tribune.
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