World Bank gives Pak 48-hour deadline to qualify for 300 mln dollar aid

KARACHI - The World Bank has given a stiff 48-hour deadline to Pakistan within which it would have to take some tough actions such as increasing electricity tariff by six percent and implementing the Value Added Tax (VAT), if it has to qualify for the 300 million dollar aid under the poverty reduction support credit.

The World Bank’s deadline has raised an alarm among concerned Pakistani officials, who are clueless about how to meet the deadline and implement some of the major economic changes.

If Pakistan successfully implements the two conditions, the approval of 300 million dollars will be made during the special World Bank meeting, which is scheduled to be held on June 29 in Washington, The Dawn reports.

The World Bank has been asking Islamabad to introduce the VAT system and has also been helping the government to chart out the process of the implementating the new tax rules.

However, the country’s business community has been strongly objecting to plans of imposing the VAT. (ANI)