Daily Times

ISLAMABAD: The World Bank (WB) has refused to release $495 million loan to Pakistan for the improvement of road infrastructure because of some audit objections and non-utilisation of the loan in time, it has been learnt.

Sources within the Ministry of Communications told Daily Times that the World Bank loan was available until June 30, 2012, but the government failed to use this loan. They said that the present government wanted that bank to release this loan in 2013 for utilisation until 2016, but the bank’s administration refused to entertain that proposal.

The National Highway Authority (NHA) was responsible for utilising the loan with the government’s guarantee, but sources said that there were some serious audit objections. They said that a third-party audit was necessary, which would start in September.

The World Bank had approved the $495 million loan under the IBRD Loan No 7341, IDA credit 3846, IBRD Loan No 7212, IBRD Loan No 7376 and IDA Loan 4816.

The government wanted to use the loan in three financial years, as it was to be given in instalments, sources said.

The Asian Development Bank also approved $204.235 million loan for the Flood Emergency Reconstruction Project, but the government was able to utilise only $141.828 million of the total amount.

The international financial institutions urged Pakistan to use these loans in time and with transparency, while official sources were of the view that the ADB loans were effective in 2009, while most of the loans had expired in 2015. They said that a third-party audit would be conducted to clear the picture.