$10 Billion Approved for Pakistani Investment

Up to $10 billion for investment in the power and water sectors has been approved for loans by the World Bank. President Gen Pervez Musharraf has, however, indicated that Pakistan was willing to accept a loan of $3-4 billion over the medium term period provided it was lent under the international development assistance (IDA) terms.

The bank's delegation, led by its South Asia vice-president Praful C. Patel, "was on a specific assignment to persuade Pakistan to apply for loans amounting up to $10 billion since its loans in the pipeline are now drying up", said a senior government official who attended the meeting between the president and the WB delegation last week.

The official said the World Bank was re-thinking its lending strategy for Pakistan from commercial lending to concessional loan programmes in view of the improving macroeconomic situation and the drying up of its credit line.