Some other funds from some multilateral donors would make it almost $1 billion. It includes mostly project aid from ADB. Negotiations on an already stopped $500 million World Bank loan have been restarted and are on track to get approval in December, said the official.
Most of the conditions for $500 million WB loan like eliminating subsidies are already implemented and condition of getting the IMF approval on overall macro stabilisation plan is now done. Authorities are also showing commitment to all major reforms initiated in the last regime.
World Bank loan is Poverty Reduction and Strategy Credit-II (PRSC), while of ADB there are number of projects whose disbursement is due in December. Discussions on WB loan were started in June and later stalled. Later WB asked Pakistan to implement a number of reforms but reduced the amount of loan to $300 million and then blocked it till Pakistan goes under the IMF programme.
Other project aid of World Bank would also get a green signal now. This loan is similar in nature under which Pakistan got $500 million stabilisation funds from ADB. The IMF loan does not generate counterpart funds for budgetary support rather its equivalent rupee value is deposited with the IMF, while WB and ADB loan are helpful in generating funds for the Finance Ministry, which would be helpful for the ministry to get funds other than the SBP borrowing. The SBP borrowing for budget purposes is also blocked under the IMF conditions.