ISLAMABAD: The World Bank has approved a concessional loan package worth $20 billion for Pakistan, carrying an interest rate of only 2 percent with a repayment period of 10 years.
According to a statement, the financing will be directed toward environmental protection, poverty reduction, healthcare, education and child development, inclusive growth, as well as clean energy and air quality improvement.
The program also aims to encourage private sector investment, making it part of the World Bank’s 10-year Country Partnership Framework.
In addition to this package, the International Finance Corporation (IFC) will mobilize another $20 billion for Pakistan’s private sector. This brings the total funding envelope to $40 billion.
Analysts suggest that this initiative could provide Pakistan with much-needed fiscal space to address pressing social and environmental challenges, while also boosting investment and long-term economic growth.
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