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Tuesday Jul 28 2020
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SBP receives over $500 million from World Bank

Last week, Pakistan had signed two loan agreements valuing $750 million with the WB and the AIIB for the Resilient Institutions for Sustainable Economy (RISE) programme. Photo: Geo.tv/File

The State Bank of Pakistan (SBP) has received $505.5 million from the World Bank on Tuesday to sustain itself in the fight against the novel coronavirus that has adversely affected the economy of the country.

Last week, Pakistan had signed two loan agreements valuing $750 million with the World Bank (WB) and the Asian Infrastructure Investment Bank (AIIB) for the Resilient Institutions for Sustainable Economy (RISE) programme.

The World Bank was to extend a loan of $500 million and the Asian Infrastructure Investment Bank (AIIB) to provide co-financing of $250 million for the programme, The News had reported.

However, the central bank hasn't specified any further regarding the installment it received as of today.

Read more: SBP receives $1.3bn as loan from Chinese banks

In a statement, the Economic Affairs Division (EAD) had said it was concessional financing in the form of budgetary support being provided by the two IFIs under the Resilient Institutions for Sustainable Economy (RISE), Development Policy Financing with the objective to (i) enhancing the policy and institutional framework to improve fiscal management, and (ii) improving the regulatory framework to foster growth and competitiveness.

The efforts aimed at strengthening fiscal management will support the ongoing stabilisation efforts of the government. The programme also included actions that respond to the immediate COVID-19 pandemic needs and addressed medium-term reforms.