World Bank to provide $ 5.5 billion development aid to Pakistan

World Bank to provide $ 5.5 billion development aid to Pakistan

Washington, Friday, December 23, 2011: The World Bank said yesterday that it will provide development aid of $ 5.5 billion to Pakistan over next two years.

 “The Bank has responded flexibly in the face of the tremendous challenges Pakistan has gone through over the past year or so,” said its Pakistan country director Rachid Benmessaoud.

“We will continue our strong support to Pakistan, while keeping a keen eye on implementation to ensure that these efforts translate into real results on the ground,” he said.

The bank’s progress report on its Pakistan program said its efforts had been disrupted over the past two years by the devastating floods of 2010-2011, ongoing security problems as well as “slow economic reform”.

“Shifting the focus and resources in response to the floods led to a delay in infrastructure investments,” it said.

It said Pakistan’s economic recovery from the floods and other problems remains slow, with growth of 3.9 percent expected next year.

“A range of governance, corruption and business environment indicators suggest that these areas remain a challenge,” it added.

The funds include $4 billion in development assistance and $1.5 billion from the bank’s International Finance Corporation, which helps private sector firms.

“We are committed to helping Pakistan realize its potential especially in key sectors such as infrastructure, renewable energy and agribusiness,” said IFC Middle East director Mouayed Mahlouf.

The announcement on part of World Bank is rather promising and if materialize, it can provide an instant boost to the otherwise faltering economy of Pakistan.

However, an important factor that may come forward to affect this offer is the poor governance practiced by the ruling lot and which has also been reported in the annual report of the State Bank of Pakistan.

An important factor to be kept in mind regarding this aid package is the strings attached to this offer. The economic managers of the country will have to ensure that whether this aid is associated to the country’s further cooperation
in the war on terror. And if that is the case, extra care should be taken to safe guard the country’s interests at any cost.

Short URL: https://www.newspakistan.pk/?p=7203

Posted by Fayyaz Yaseen on Dec 23 2011. Filed under Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry