Pakistan goes extra mile for $ 300m WB loan
28th October 2008
Pakistan has initiated gigantic efforts to restore the $ 300 million loan from the World Bank (WB) that has been reportedly stalled on the intervention of the International Monitory Fund (IMF).
(Online, quoting the BBC, said Adviser on Finance Shaukat Tareen’s plan B for financial help suffered a major setback on Monday when the World Bank, after an objection from the IMF, stopped the payment of $ 300 million approved loan.
According to the BBC, an officer of the Finance Ministry was of the view that the IMF had raised objection to the approved programme of the bank for Pakistan to provide it funds to the tune of $ 300 million. The officer said the IMF opined that the World Bank had no authority to extend such a loan to any country. The officer said that it was expected that the IMF would not object to the programme, keeping in view Pakistan’s financial crisis. The $ 300 million loan from the WB was part of the wish list of the Finance Ministry, under which it was expecting billions of dollars in aid.)
Pakistan has paced up efforts to establish contacts with international fiscal institutions after the issuance of instructions to Ambassador Husain Haqqani. Haqqani immediately established contacts with some senior officials in the US capital and it is hoped that Islamabad would receive the stalled money next month.
Sources told The News here on Monday evening that Pakistan was making strenuous efforts to get the bank decision of stalling lone to Pakistan reverted as it could have a devastating impact on its struggle to save the country from imminent default.
Pakistan’s diplomatic mission in Washington has also established contacts with the officials of the WB and Haqqani has been asked to keep Islamabad posted with the developments on regular basis, the sources said.
Diplomatic observers have reminded that the West, particularly the United States, did not receive well the consensus resolution of parliament with regard to its national security that envisaged a negotiated settlement with extremists who are prepared to lay down arms. Some of the Western capitals quietly termed the resolution an ‘undesirable verdict’ and the decision by the WB could be an offshoot of the same. Pakistan could also have to face some more pressure on this count, the observers opined.
The visiting US Assistant Secretary of State, Richard Boucher, did not mince words while expressing his reservations over Pakistan’s intention to enter into dialogue with the disgruntled elements last week and the bank’s decision could be part of the malaise to teach Islamabad a lesson for taking such ‘unacceptable’ decisions. The sources hinted that Pakistan could dispatch a high-level SOS mission to save the situation.
President Asif Ali Zardari, who would be leaving for the United States in the second week of next month, would also strive to seek financial comfort for the country during his interactions with some high ups of that country in New York. He may also dash to Washington for the purpose during the trip.
Meanwhile, Advisor to the Prime Minister on Finance Shaukat Tarin has initiated consultations with senior officials of the ministries concerned and is hopeful to acquire the money from the WB. He is also working on alternate arrangements in the given situation.
Zardari has tasked the high ups here to save Pakistan from default at any cost. The situation would be clear within five weeks as the economic wizards are optimistic about the success of their struggle, the sources added.
Source: The News