The World Bank on Wednesday has set four conditions that Pakistan has to meet during the current fiscal year 2021-22 in order to get approved for a $350 million programme loan.
According to a GeoNews report, this will include bringing the entire country under one General Sales Tax (GST) regime and amendment of the Fiscal Responsibility and Debt Limitation Act (FRDLA) via parliament.
Removing the circular debt according to the Circular Debt Management Plan (CDMP) and recovery of arrears of power sector are the other two conditions for approval of $350 million programme loan under Resilient Institutions Strengthening Program (RISE-II).
According to an official statement, Federal Finance Minister Shaukat Tarin discussed some terms, that needed to be met for the completion of the programme, during a meeting with World Bank Country Director Najy Benhassine and his team at Finance Division on Tuesday.
The meeting deliberated progress on the World Bank projects and programmes underway in Pakistan.
The report claimed that the government wanted to increase the amount up to $500 million under RISE-II.
The report further said that Pakistan was also negotiating another programme loan, Pakistan Programme for Affordable and Clean Energy (PACE)–II, from the World Bank in order to reduce the circular debt flow.
Last year, the World Bank had approved $ 400 million loan funding for PACE initiative meant to improve financial viability of power sector. The PACE-II program focuses on clean energy in Pakistan.
According to the media reports World Bank, which is actively engaged with Pakistan government in private sector participation in power Distribution Companies (Discos), is of the view that there is no progress since the Cabinet approval of the roadmap.
“World Bank said that without progress it cannot say the program is on track,” the sources added.