October 5, 2002	Saturday	Rajab 27, 1423

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ISLAMABAD, Oct 4: The World Bank will enhance Pakistan’s annual assistance from the existing $600 million to $900 million in 2003-04 to effectively support various development initiatives.

Official sources, however, said here on Friday this substantial increase in annual funding will depend on the pace and depth of structural reforms and so long as Pakistan remained credit-worthy for the bank’s lending.

The new $900 million annual assistance is expected to be a blend of International Bank for Reconstruction and Development (IBRD) and the International Development Agency (IDA) funding, both being the World Bank windows.

But Pakistan is mostly seeking IDA funding which is significantly concessional when compared with that of the IBRD’s. The bank did not propose any IBRD lending for the fiscal year 2002-03.

Pakistan has also been assured of the World Bank’s support to strengthen the investment climate through a combination of analytical work and financial assistance aimed at reforming the key sectors.

The World Bank group plans to carry out a significant programme of analytical work to build the knowledge base to underpin the policy dialogue on private sector development.

Pakistan has been told that in addition to the governance reforms, which have a direct bearing on the investment climate, the World Bank will continue to support financially the reforms of the governance and improving of the regulatory environment.

Officials said that the IFC, another lending arm of the World Bank, will support the development of new products to better meet the needs of the private sector, including long-term finance for infrastructure, and to expand access to financial services to new clients, like the bankable poor through micro-finance or leasing institutions and to the under-served small and medium enterprises.