ISLAMABAD:

Pakistan has decided to obtain two foreign loans worth $1 billion for enhancing efficiency of the tax machinery, accountability of expenses and ensuring compliance with state-owned enterprises law — objectives that require will to improve rather than fresh loans.

The country has decided to seek a $600 million loan from the World Bank for the “Pakistan Public Resources for Inclusive Development” programme and $400 million from the Asian Development Bank (ADB) for the “Accelerating State-Owned Enterprise Transformation Programme”, official documents showed.

The $1 billion translates into a staggering Rs281 billion at the current exchange rate, sufficient to build an airport or hundreds of schools.

The loans will be obtained as budget support to cushion foreign exchange reserve

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