World Bank, Pakistan in talks on funding - official
WASHINGTON (Reuters) - The World Bank is in discussions with Pakistan on a broad economic package that could include reforms agreed by the authorities and financing by the bank to stabilize the economy, a senior bank official said Wednesday.
Rob Floyd, the World Bank's program manager for Pakistan, denied media reports that the World Bank had approved a $500 million emergency loan to Pakistan, which like other countries around the world is struggling to cope with soaring fuel and food prices.
"The World Bank has been in discussions with Pakistan on a stabilization package that may include reforms from their sides and financing from ours but we have not come to closure on that," Floyd told Reuters.
He said discussions had been going on for several months.
The country's new civilian government, which took over after eight years of military rule under President Pervez Musharraf in February, has sought to take urgent action to deal with slowing economic growth, inflation that is running at over 20 percent, an exchange rate that is at all-time low, and currency reserves that are rapidly dwindling.
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