Pakistan asks World Bank to restructure $200 loan

Pakistan has asked the World Bank to finalize its restructuring plan for the $200 million loan which the lender had approved last year for the locust emergency and food security project

Aug 29, 2021
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World Bank to restructure $200 loan

Pakistan has asked the World Bank to finalize its restructuring plan for the $200 million loan which the lender had approved last year for the locust emergency and food security project. The loan was sought last year after the locust crisis hit the country last year, worsening the country’s food shortage. The country has, for the first time, become a net importer of food due to the crisis.

Economic Affairs Minister Omer Ayub Khan held a meeting Saturday to review the restructuring plan and has asked the lender to finalize it keeping in view the long-term approach as food security is essential for any country, reported Dawn.

The project is aimed at supporting emergency actions to control the locust outbreak and prevent its nationwide spread. Under the project, warning systems will be improved, strengthening the food security and nutrition information system. The project will provide critical decision-making tools to prevent pest outbreaks and improve national food security.

Internal consultations with various stakeholders have been completed, said Rashid Langrial,  the additional secretary of the Ministry of National Food Security and Research. World Bank Officials have also held a meeting with Omer Ayub and discussed the plan. 

The World Bank is committed to providing all possible technical and financial support for key priority areas of the government of Pakistan said Illango Patchamuthu who is World Bank Director for Strategy and Operations of South Asia. The World Bank would also continue its initiatives for regional connectivity and trade, he said.

(SAM)