News

 

Friday, September 03, 2010

WB boosts flood support to $1 billion

Staff Report

ISLAMABAD: World Bank President Robert B Zoellick told Finance Minister Hafeez Shaikh on Wednesday that the bank would raise its flood-related support in the current fiscal year to $1 billion from $900 million, while emphasising commitment to help Pakistan recover from the worst floods in its history.

“As the surging Indus River devastates Pakistan, the country needs the world’s support to meet urgent humanitarian needs: food, clean water, sanitation facilities, medical and nutritional supplies, and vaccines,” said Zoellick after a meeting with the Pakistani finance minister. “At the same time, reconstruction and recovery require long-term support. The World Bank is committed to helping the people of Pakistan during this time of need and has made $1 billion available to finance immediate recovery needs and longer term reconstruction.”

The money will come from World Bank’s fund for the poorest countries, the International Development Association (IDA), which means that the loans are concessional and carry no interest payments. This funding is already programmed money for Pakistan that is being diverted to meet immediate needs of floods victims. Zoellick and Finance Minister Shaikh discussed the government’s economic reform programme, institutional and governance arrangements, and the need to mobilise additional resources for flood reconstruction. “This disaster underscores Pakistan’s fiscal vulnerability and dependence on foreign aid. Renewed commitment to governance and fiscal reforms will be important to mobilise domestic revenues and would ensure that funds reach the poor people,” he added.

Courtesy www.dailytimes.com.pk

 

Back to Top