Islamabad, 21 January 2023 (GNP): The World Bank has announced to delay in the approval of two loans worth $1.1 billion until the next fiscal year. The lender has also opposed the policy of levying taxes on imports, creating a disruption in the process of implementing a $32 billion annual financing plan.
The coalition government was already struggling to revive the International Monetary Fund (IMF) programme. The world bank’s latest decision has created a hole of $1.5 billion against the government’s annual financing plan. The WB believes that Pakistan cannot achieve macroeconomic stability until its power sector is fixed.
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Under the PACE loan series, Pakistan has committed that it will reduce generation costs through a renegotiation of the PPAs, increase the share of renewable energy to 66% via solar, wind, and hydropower by 2030, reduce the number of subsidized electricity consumers, adhere to the agreed annual tariff rebasing schedule and improve the efficiency of power distribution companies.
