The Finance Ministry said lawmakers’ rejection of their application for a $229 million loan from the International Monetary Fund (IMF) is regrettable, but said they would refer the proposal back to MPs.

MPs rejected the request on Wednesday, saying the government had failed to provide a transparent plan for spending the loans.

“The reason for the rejection of the $229 million loan request was that MPs insisted the government had not provided a transparent plan for the investment of the funds,” said Zalmay Noori, an MP.

Some MPs, however, were not against the loan, saying they are not against such a move but are looking for a clear mechanism by which the funds will be spent.

“This loan should have been approved because it was in favor of Afghanistan. They were going to forgive 20% and 80% was to be returned after many years,” said Jawed Jaihoon, an MP.

Finance Ministry spokesman Shamroz Khan Masjidi said the loan request was proposed to overcome the shrinking budget and better meet the challenge of COVID-19.

“Meanwhile, we are working on how to revise the loan plan to get parliamentary approval as it is a good opportunity for the Afghan government,” Masjidi said.

Critics said the lack of sources of revenue prompted the government to seek loans.

“I don’t think getting a loan is a good idea. There should be more reliance on international aid and in the meantime, efforts should be made to avoid wastage of the COVID-19 response fund,” said Qais Mohammadi, an analyst.

This comes as international donors have pledged over $500 million in aid to Afghanistan for the country’s COVID-19 response.