Finance Ministry contradicts news item


ISLAMABAD, Aug 12 (APP): The Ministry of Finance Saturday
clarified a news item appeared in a section of press that the World
Bank had declined government’s request for a policy loan linking the
lending support with the exchange rate adjustment.
A spokesman of the Finance Division termed the news item as
‘incorrect’ and reflected lack of understanding of the subject and
the level of engagement between the government and the World Bank.
The government and the World Bank remain engaged on an ongoing
basis on various projects and programmes including policy based
lending support within the framework of country partnership strategy
2015-19 of the Bank.
During this fiscal year, the government has not so far
officially communicated any specific request for a policy-based loan
from the Bank.
Therefore, the question of denial by the World Bank for the
policy loan does not arise. Furthermore, it is important to note
that exchange rate policy does not fall in the domain of the World
Bank. Rather maintaining the exchange rate stability is a sovereign
decision of the government.
Therefore, the claim made by the newspaper that the Bank has
declined government’s request for a policy loan is grossly
incorrect, the spokesman said.
He requested that due care be taken while reporting on such
matters as any misreporting based on lack of understanding could
potentially damage perceptions with regard to positive outlook of
the economy as well as investors’ confidence.
This is necessary to protect the hard earned economic gains
achieved over the last four years and to carry the growth trajectory
of the economy forward, he added.