November 11, 2001	Sunday	Shaba’an 24, 1422

Please Visit our Sponsor (Ads open in separate window)

ISLAMABAD, Nov 10: The government and the World Bank will start formal talks here on Monday to assess Pakistan’s increased funding requirements, arising out of Sept 11 terror attacks on America.

The Vice President of the bank for South Asian Region, Ms Mieko Nishimizu, will meet senior officials of the ministry of finance and the planning commission. She will be informed about the extent of losses the country is suffering, specially in the shape of reduced exports and lack of foreign investment.

Sources said here on Saturday that concerned officials had prepared a paper that identified areas of possible increased World Bank assistance, specially for poverty alleviation, improving rural health and creating more opportunities for primary education in all the four provinces.

The ministry of finance had also finalized a poverty reduction strategy paper (PRSP) which, according to the officials, would be discussed with Ms. Nishimizu who planned to stay in Pakistan for 10 days, the sources added.

According to Country Assistance Strategy - Progress Report 2001, prepared by the World Bank, Pakistan continues to face the same formidable development challenges: building democratic institutions repressed through years of autocratic governments; and implementing a wide range of economic reform to lay the basis for sustainable and equitable growth in order to reduce poverty.

“ Pakistan’s track record as a reformer has been weak and turbulent”, the report said. Between 1988 and 1999, Pakistan had nine IMF-supported reform programmes, none of which were completed. Progress was made in some areas, particularly trade liberalization and banking sector reform, and reversal of reform had been extremely rare, the report added.

“However, the country failed to meet several of the reform goals it has set for itself, and macroeconomic stabilization remained elusive. Thus, the economy has grown increasingly vulnerable, balance of payments crises have recurred in recent years, and external debt indicators have exceeded those of the highly indebted poor countries (HIPC)”, the report said.

“It is advisable, therefore, that financial assistance in support of the government’s poverty reduction strategy be extended-to the extent possible-on concessional terms in view of Pakistan’s debt situation. As Pakistan implements its reform programme, with the support of its development partners, its debt indicators are expected to improve over the medium term”, the report believed.