September 11, 2002	Wednesday	Rajab 3, 1423

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ISLAMABAD, Sept 10: The World Bank will offer $200 million during 2002-2003 to improve Pakistan’s balance of payment position.

Sources in the local multilateral agencies said here on Tuesday that this support would be the third Structural Adjustment Credit (SAC-3), currently being finalized between the World Bank and Pakistan.

Earlier, $500 million, was offered to Pakistan in June. Last year, the Bank gave $350 million.

The third credit will be extended from the Bank’s International Development Assistance (IDA) window.

The Pakistani and World Bank officials are also discussing new funding for improving tax administration through IT and better training of the personnel of the Central Broad of Revenue (CBR).

Sources said besides SAC-3, a considerable amount out of Bank’s planned $600 million assistance meant for the current year, would be given for improving the tax administration of the CBR.

A decision has also been taken by the World Bank to provide $100 million and $90 million for on-farm management programmes of Sindh and NWFP, respectively.

Sources said the World Bank, IMF and the Asian Development Bank (ADB) were extending necessary support in the hope that Pakistan would generate a surplus income of nearly one billion dollar annually till 2004 or about 1.5 per cent of the Gross Domestic Product (GDP). This will be in sharp contrast to average annual resource deficit of $1.5 billion that occurred in the 1990s. This would require major export expansion as well substantial import saving. In addition, the Bank expected that the government would also mobilize at least $3 billion from privatisation sales.