ISLAMABAD, May 2 (Reuters) - The World Bank has approved a $12 billion loan over five years for cash-strapped Pakistan, the country’s finance ministry said on Friday.
The finance ministry said the money will target “energy, economy, (fighting) extremism and education”, with $1 billion being transferred to Pakistan in the next week.
The loan will carry a two percent interest rate.
Pakistan is struggling to overcome a massive energy crisis, and a shortfall in tax revenues, and has borrowed heavily to pay government expenditure.
Reporting by Catherine Evans in Islamabad; Editing by Michael Perry