30 January 2005	Sunday	19 Zilhaj 1425

ISLAMABAD, Jan 29: A 10-member team of the World Bank's executive directors is arriving here on Sunday on a five-day visit to discuss Pakistan's future funding requirements.

The World Bank is expected to increase its funding to the country from the existing $900 million annual to $1 billion and the matter will be discussed at the team's meetings with Pakistani officials.

The visit is part of a regular programme in which executive directors go to a number of countries each year to review the bank's policies and their results.

Meanwhile, adviser to the prime minister on finance Salman Shah confirmed at a press briefing on Saturday that WB president James Wolfensohn would visit Pakistan in the second week of February. He dispelled the impression that the WB chief would discuss the Baglihar dam issue with officials here.

The WB team coming to Pakistan will comprise executive directors from Algeria, Netherlands, United Kingdom, India, Switzerland, Mexico, Australia, Japan and France.

During its visit, the delegation will attend briefings on matters pertaining to poverty reduction, education, health, infrastructure, privatisation, governance, investment climate and overall financial and economic reforms.

Apart from calling on Prime Minister Shaukat Aziz, the delegation will meet the State Bank governor, the PM's adviser on finance, ministers for privatisation, health and education and the Punjab chief minister.

The delegation will also visit a number of projects in the education and infrastructure sectors.

SUKUK BOND: In reply to a question about attacks on gas pipelines and installations in Balochistan, Mr Shah said that the investment environment was still in good shape, adding that foreign investors had reposed confidence in government's initiatives, capital market and other reforms.

The government, he said, had established an 'asset-based' Pakistan International Sukuk Company to deal with the new $600 million Islamic bond Sukuk, during the next five years. The receipts of Sukuk bonds were being deposited with the State Bank of Pakistan, he added.

He said that Sukuk bonds would help attract Foreign Direct Investment (FDI) in Pakistan and added that many other countries had also floated bonds to attract FDI.

"Pakistan is also witnessing a rise in the inflow of FDI. During the first half of the current year, the country received FDI worth $445 million as against $270 million during the same period last year. This is 60 per cent increase," Mr Shah observed.

He dispelled the impression that the government had mortgaged the Rawalpindi-Lahore Motorway (M-2) to float the bond, saying that Sukuk was asset-based and not asset backed.

The purpose of floating the Sukuk bond was to diversify its investor base, he added.

In February last year, he pointed out, the government had floated the $500 million Euro bond.