WB to consider Pakistan's request for $800m loans next week
The World Bank is going to consider approving two budget support loans of $800 million for Pakistan during the next week. The Board of Directors of the World Bank would take up Pakistan's request for two budget support loans totalling $800 million in the upcoming week, said an official of the ministry of Economic Affairs.
Pakistan had recently met the conditions of the World Bank of enhancing monthly cash stipend of the Benazir Income Support Programme. According to the reports, the WB would consider two support loans including Human Investments to
Foster Transformation (SHIFT-II) programme and the Programme for Affordable and Clean Energy (PACE).
In July to May of the current fiscal year, Pakistan had received loan worth of $1.224 billion from the World Bank, according to the data of ministry of Economic Affairs. The government had projected to receive $2.257 billion from the WB in entire outgoing financial year. Earlier, in last week, the WB had approved $442 million in financing to support Pakistan in improving access to water and sanitation services for the most vulnerable rural communities in Punjab province.
The Ministry of Economic Affairs, Government of Pakistan and the World Bank on Saturday signed the financing agreement of "Punjab Rural Sustainable Water Supply and Sanitation Project" worth US$ 442.4 million in Islamabad.
Noor Ahmed, Secretary, Ministry of Economic Affairs signed the financing agreement on behalf of the Govt of Pakistan while Najy Benhassine, Country Director, WB signed the agreement on behalf of the World Bank. This project aims to provide equitable and sustainable access to clean drinking water; improve sanitation; and reduce child stunting in Punjab Province.
The project interventions will cover 2,000 villages including 2,000 main settlements and 8,000 small settlements in sixteen (16) Districts of Punjab Province that are the poorest and have the worst social infrastructure and stunting issue.
In line with the vision of Prime Minister Imran Khan to ensure equitable and inclusive socioeconomic opportunities, eight (8) districts from South Punjab i.e. Bahawalnagar, Bahawalpur, DG Khan, Lodhran, Multan, Muzaffargarh, Rahim Yar Khan & Rajanpur are included in the project. Furthermore, eight (8) other districts from Central and North Punjab i.e. Bhakkar, Chakwal, Chiniot, Jhang, Khushab, Mianwali, Pakpattan & Sarghodha are also included after due diligence. The project will directly impact the life of common man and create employment opportunities in the rural areas.
The Government will invest in social infrastructure and improve service delivery to (i) provide potable water through cost-effective & sustainable investments; (ii) provide safely managed sanitation facilities to reduce the total fecal burden in the village environment; and (iii) raise awareness and promote behavior change for better hygiene practices at the household & community level to promote health and ensure the sustainability and quality of the water source. The project interventions will directly benefit to six (6) million rural people of Punjab and will support in reducing the incidence of stunting among children aged 0-3 (40 percent) in Punjab.
Minister for Economic Affairs, Mr. Omar Ayub Khan appreciated the World Bank's efforts by highlighting that this is a signature project which reflects the vision of the PM of Pakistan to invest in human capital and to improve the living standard of the people.
The Minister further stated that today's event was a reflection of continued confidence by the IFIs on the Government's policies, economic reforms and people-centered programs. He reiterated the commitment of Federal Government to extend all possible support to the Provincial Governments in their efforts to invest in human capital by addressing challenges to health & education; building resilience, improving service delivery and promoting economic opportunities to ensure inclusive and sustainable economic growth in the country.