ISLAMABAD, March 12: The World Bank executive board has decided to extend concessional assistance through the International Development Association (IDA) to Pakistan in infrastructure sector like water and irrigation
, power and telecommunications.
"The board of directors unanimously concurred with (the bank) staff that the PRSP (Poverty Reduction Strategy Paper) provides a credible poverty reduction strategy and a sound basis for IDA's concessional assistance", a World Bank statement said.
The PRSP will be highlighted at the forthcoming Pakistan Development Forum scheduled to be held here on March 17-19.
At the forum, donors would discuss steps to help Pakistan fulfil its poverty reduction strategy. One of the areas the donors would focus on was infrastructure, which included additional investments in water and irrigation, power, transport, and telecommunications, the World Bank said.
The IDA provides long-term loans at zero interest to the poorest of the developing countries. Pakistan does not fall in this category, but the World Bank is ready to change its IDA's terms of reference to extend loans to Pakistan.
The World Bank vice-president for South Asia, Praful C. Patel, who visited Pakistan last month, has been making a strong case to authorities to seek fresh World Bank assistance.
Pakistan has told the bank that it is already repaying its expensive debts ahead of schedule and can accept loans which carry only service charges.
The World Bank's funding programme to Pakistan is now drying out as Islamabad did not seek any loan programme since the start of Ghazi Barotha Hydropower Project about a decade ago.
The bank executive board of also reviewed the joint staff assessment of Pakistan's PRSP conducted by the staffs of the International Monetary Fund and the World Bank.
"The Poverty Reduction Strategy Paper tells the story of Pakistan's impressive turnaround," John Wall, World Bank's country director for Pakistan, told the executive board.
"Having taken a steep path out of the debt crisis and re-established its financial credibility, Pakistan is ready for a second round of reforms. This PRSP is the core of this government's economic revival programme.
The government's strong ownership of the strategy, its effective commitment to macro-economic stability and significant progress in implementing structural reforms have set Pakistan on a course to significantly reduce poverty", he said.
"We believe that the Poverty Reduction Strategy Paper is a good plan for improving the lives of the poor in Pakistan", he added.
The presentation at the board of the World Bank followed a similar review at the IMF executive board on Monday.
