Islamabad, July 28: Pakistan is seeking fast-track World Bank aid to counter the blow of sanctions for its nuclear tests and hopes any decision will be free from "the tool of politics or pressure," a top official said today."Not only fast-track, but a quantum leap in the size of it," secretary for information Khalid Naeem Soofi told Reuters in a interview. He gave no figures.
He was commenting on a Reuters report from Washington which said the World Bank is working on an emergency loan to help Pakistan with its balance of payments position after US-led sanctions for its nuclear tests in May.
Finance minister Sartaj Aziz said last month sanctions had snarled $1.5 billion in anticipated forex inflows and might force the government to declare a moratorium on its $32-billion foreign debt.
"We are fulfilling our commitments. Therefore international institutions should fulfill their commitments and not be a tool of politics or pressure," he said. He named no country.
Asked if Pakistan's request wasencouraged by fresh World Bank lending to India since its May nuclear devices, soofi said: "Yes." He did not elaborate."I don't see any reason why they (the World Bank) should refuse. You have to judge a country by its performance."
Governor of the state (central) bank of Pakistan, Mohammed Yaqoob, said on Monday forex reserves had fallen to $531 million on July 24 compared to $1.4 billion when it crossed the nuclear threshold on May 28.
US-led sanctions reflecting international concern at proliferation of nuclear technology snarled a $1.56 billion International Monetary Fund $1.56 billion credit and Yaqoob said no talks had started on a new lending programme.
Soofi complained Pakistan was forced to detonate its nuclear devices because of India's nuclear trials earlier that month and expressed exasperation over international reaction which hit an agreed IMF programme.
He said Pakistan had detonated its devices only after intense public debate and could have opted to declared a moratorium or delay itsdebt repayments on May 28 but did not.
"We never thought that international institutions like the IMF would become something of a political institution. We thought that never in its entire history had development aid been stopped on any programmes," he said.
Soofi cited orderly payment of Pakistan's debt servicing schedule to date as proof of its determination to work with the IMF and World Bank and other multilateral agencies to implement reforms under prime minister Nawaz Sharif's government.
"Look at our history. We have never defaulted on our debts," he said. "What better proof do you want (of Pakistan's commitment to IMF and World Bank targets)?" he said.
"We could have said - we freeze it here. But we did not do that...We fulfilled our obligations and we expect international institutions to do the same," he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.