ISLAMABAD: World Bank (WB) delayed approval of two loans for Pakistan worth $1.1 billion until next fiscal year pending some steps on country's energy debt and tariffs, Finance Ministry source told Reuters.

Approval of loans have been pending since June said source, declining to be named as they were not authorised to talk to media. Pakistan's next fiscal year starts in July. "Major issue is circular debt management plan in energy sector and tariff revision," said source.

"These actions are pending on our side." World Bank and Finance Ministry did not immediately respond to requests for comment.

South Asian nation of 220 million is still reeling from devastating floods that have led to losses of more than $ 30 billion.

Foreign exchange reserves held by State Bank of Pakistan fell to $ 4.3 billion earlier this month, barely enough for three weeks of imports.

Published in The Daily National Courier, January, 19 2023

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