According to a source in the finance ministry, the World Bank has delayed the approval of $1.1. bn loan to Pakistan until the next financial year due to tariff revision and circular debts in the energy sector.
The source has told Reuters that the loan has been pending since June. They said, “The major issue is the circular debt management plan in the energy sector and tariff revision.” They further added, “These actions are pending on our side.”
The finance ministry and World Bank have not yet officially responded to the news.
Pakistan’s new fiscal year begins in April. The current foreign reserves are declining very fast and have fallen to $4.3 bn. Pakistan has also suffered huge losses in the recent devastating floods and is facing an economic crisis.
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