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Tough Loan Conditions Set for Pakistan by World Bank

The World Bank recently imposed strict terms and conditions for a $1.5 billion loan, including increases in electricity rates, the introduction of new power sources, and tax policies. This put the government in a difficult position and prompted it to request a review of the IMF-the International Monetary Fund deal.

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These loans are a component of the $27 billion total required for foreign funding for the current fiscal year, FY21, according to sources in the finance ministry.

But, according to sources, the government has requested $500 million from the World Bank for each of the Resilient Institutions for the Sustainable Economy (RISE-II) and the Program for Affordable and Clean Energy while also obtaining the Human Investments to Promote Transformation (SHIFT-II) (PACE).

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