ISLAMABAD
A section of the press on August 11, 2017, carried a news report titled, ‘WB links loans to liberal foreign exchange policy’ stating that the World Bank has declined government’s request for a policy loan linking the lending support with the exchange rate adjustment.
The Finance Division spokesman clarified that the report is totally incorrect and reflects a sheer lack of understanding of the subject and the level of engagement between the government and the World Bank.
The government of Pakistan and the World Bank remain engaged on an ongoing basis on various projects and programs including policy based lending support within the framework of Country Partnership Strategy 2015-19 of the Bank.
The spokesman said that during this fiscal year, the government of Pakistan has not so far officially communicated any specific request for a policy-based loan from the Bank. Therefore, the question of denial by the World Bank for the policy loan does not arise.
Therefore, the claim made by the said report that the Bank has declined Government’s request for a policy loan is grossly incorrect. The government would request the media to exercise caution while reporting on such matters as any misreporting based on lack of understanding can potentially damage perceptions with regard to the positive outlook of the economy as well as investors’ confidence, added the spokesman.
