The State Bank of Pakistan, in its statement, said that the country has received 505 million US dollars from the World Bank (WB).
The PTI-led federal government of Pakistan has been taking loans from the international financial institution to increase its foreign reserves and plug its external and fiscal deficits, the twin curse that forced the country to sign a 6 billion US dollars bailout package with the International Monetary Fund (IMF) back in July 2019.
The deal between Pakistan and the IMF opened more doors for the country as the likes of World Bank (WB), the Asian Development Bank (ADB), and Asian Infrastructure Investment Bank also pledged support.
According to the International Monetary Fund (IMF), its programme was supposed to unlock funding of 38 billion US dollars from the multilateral donors.
According to the reports published by the media, which quoted data from the Economic Affairs Division, Pakistan has taken over 13 billion US dollars in foreign loans in the fiscal year 2020. The fresh loans from the international financial institutions helped the country double its dollar reserves to 12 billion US dollars this year.
The country’s current account showed a monthly surplus in October last year and in May 2020. In the latest fiscal year, the current was down 78%.