KARACHI, Oct 13 (Reuters) - 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 June 2009.
“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 year.
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 policy loans. (Reporting by Sahar Ahmed; Editing by Simon Cameron-Moore)