KARACHI Oct 13 The World Bank could provide as
much as $1.4 billion support for Pakistan during the next nine
months, but its disbursal requires board approval, a World Bank
official said on Monday.
The funding would fall under a three-year country
assistance strategy (CAS) that is due to run until the end of
"The $1.4 billion figure is an indicative number and if
approved by the board of directors, then it would be allocated
to different sectors," the World Bank official, speaking on
condition of anonymity, told Reuters.
According to the state-run news agency Associated Press of
Pakistan, the World Bank has pledged to provide $1.4 billion
support for Pakistan, which includes $600 million for
investment portfolio and $800 million for budget support.
Pakistan is desperate for a capital infusion to restore
rapidly dwindling foreign currency reserves in order to meet
future debt payment obligations.
The rupee struck a record low of 80.30 to the dollar last
week, and was quoted at 79.27/37 at 2:30 p.m. (0830 GMT),
having lost 22.3 percent of its value since the start of the
The World Bank official stressed there was nothing new
about the funds available through the CAS.
Published in April, 2006, the CAS policy set an upper limit
for lending by the International Bank for Reconstruction and
Development at $3.4 billion of which up to $1.3 billion could
take the form of development policy loans."
The report said annual lending could increase to as much as
$1 billion per year with up to $500 million in development
(Reporting by Sahar Ahmed; Editing by Simon Cameron-Moore)