World Bank funding linked to IMF talks in Dubai

[Naveed Yaseen]

By Sajid Chaudhry

ISLAMABAD: The World Bank funding for four projects has been linked to the success of the fourth review of Pakistan’s economy during the meeting with the International Monetary Fund (IMF) in Dubai from July 3 to 11, official sources told Daily Times on Thursday.

According to the sources, the Executive Board of the World Bank is expected to consider four of Pakistan’s projects in the meeting – $200 million for the expansion of social safety nets, $100 million for a higher education commission project, $50 million as an additional loan for on-farm water management in Sindh and $30 million as technical assistance for Thar Coal development.

The issuance of a Letter of Comfort (LoC) by the IMF is necessary to begin each project prior to its approval by the World Bank Executive Board, explained the sources.

In case Pakistan’s economic managers are able to achieve success during this fourth review of Pakistan’s economic situation during the Dubai talks, an LoC would be made available.

Pakistan has already met the performance criteria agreed to between Pakistan and the IMF by March 2009. The review of the measures taken in the 2009-10 federal budget may, however, become difficult as the government has already withdrawn many taxation measures, such as a tax on CNG and a decrease in the withholding tax on imports. Similarly, the government has not brought into the tax net provincial services, nor has it imposed capital gains tax on real estate in the provincial budgets.

http://www.dailytimes.com.pk/default.asp...009_pg7_24