Pakistan is likely to receive a $400 million loan from the World Bank in August, according to the sources. The Economic Affairs (EAD) Division officials have contacted World Bank officials recently to disburse $400 million by next month.
The loan amount will be spent on power sector reforms, sources in the finance ministry said.
A documentary agreement has been reached between Pakistan and the World Bank with regards to this. The World Bank has already provided an installment of 440 million this month, the Ministry of Finance said.
Last month, the World Bank’s Board of Executive Directors had approved $442 million in financing to support Pakistan in improving access to water and sanitation services for the most vulnerable rural communities in Punjab province.
The Punjab Rural Sustainable Water Supply and Sanitation Project (PRSWSSP) will help upgrade water supply and sanitation infrastructure and services that ensure equitable and sustainable access to drinking water and safe wastewater management. The project prioritizes rural areas where water contamination and poor sanitation practices are more prevalent, causing high levels of illness and child stunting.