Promised funds of $20.073bn face delays

As the cash-strapped nation eyes assistance from friendly countries and the International Monetary Fund (IMF), the Economic Affairs Division (EAD) has revealed that the balance of undisbursed funds stands at $20.073 billion from September 2022.  

In the quarterly report, the division noted that the undisbursed balance was $21.121 billion as of end June 2022. During July-September 2022, disbursement was $2.238 billion including $1.166 billion from the IMF which was committed in the seventh and eighth review.

The undisbursed funds is the amount outstanding from the agreement made by the lender. 

Back in October 2022, the World Bank had predicted a delay in disbursement of at least nine projects. This also included a potential cancellation of $730 million project, and concessionary financing of $400 million, due ‘serious problems’ in their design and execution. It was noted that the cancellation of the projects can be utilized in flood-related projects it follows proper and timely execution. 

During the months of July to September 2022, a total of $421.16 million commitments were made including $412.60 million loans and $8.56 million grants. Bank of China also committed 200 million as commercial loans.

Foreign-funded projects often remain behind schedule and are restructured due to implementation-related challenges. These projects have mostly been designed by international consultants who are not always in touch with the ground root problems or falling into a disagreement about policies with the government. Back then Martin Raiser, World Bank Vice President for South Asia highlighted, “international assistance will be critical to recovery, but it can only be effective in supporting a resilient and inclusive recovery if the government maintains the momentum of its economic reforms.”

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