World Bank Rates Two Pakistan Loan Programmes as Mixed

The World Bank has raised concerns over Pakistan's economic reforms, pointing to governance and how the reforms are carried out. Two loan programmes worth around $670 million received a moderately satisfactory rating.

In this article we set out the rating and the risks that were flagged, and we leave out claims this assessment does not make. Here is everything you need to know.

What the World Bank actually rated

The rating applies to two loan programmes, together worth around $670 million. Moderately satisfactory is the grade given. Substantial risks were flagged with it. The assessment says stronger implementation is needed if Pakistan is to achieve its economic targets.

The programmes are not named in this account. Nor does it give a figure for debt, inflation or growth. The stated problems are governance and implementation.

Why it matters

A mixed rating on $670 million of loans is a judgment on delivery, not a new forecast. The useful line is the one about implementation: the targets are still the country's targets, and the Bank is saying the carrying-out of the reforms is the weak point.

• The institution is the World Bank
• The subject is Pakistan's economic reforms
• The weaknesses named are governance and implementation
• Two loan programmes are covered
• Their combined value is around $670 million
• The rating is moderately satisfactory
• Substantial risks were flagged

What this assessment does not say

1. The names of the two loan programmes.
2. A debt, inflation or growth figure.
3. That the loans have been cancelled.
4. A deadline for the stronger implementation it calls for.

What happens next

Naming the two programmes, or publishing the next rating, would show whether moderately satisfactory was a warning or a plateau. We will update this article if the Bank does either.

Our verdict

The World Bank rated two Pakistan loan programmes worth around $670 million as moderately satisfactory, with substantial risks and concerns about governance and implementation. It says stronger implementation is needed to meet the country's economic targets.

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