ISLAMABAD, Oct 26: The World Bank does not see any serious impact of Oct 8 earthquake on Pakistan’s economy and has advised the government not to divert development budget to rehabilitation and reconstruction projects.
“It would be a mistake to divert development budget for relief and reconstruction activities as we do not see any serious impact of earthquake on economy,” World Bank’s country director John W. Wall told a news conference on Wednesday.
“The government should avoid reallocating resources and let the donor community play its due role in this behalf,” he suggested.
He said Pakistan’s growth projections would remain unchanged as there was no loss to agriculture and industry which was mostly located in Punjab and Sindh. In reply to a question, he said the IDA funding of the World Bank was a soft loan and added that the WB was already extending financial assistance on marginal interest rate. In 1999, he recalled, Pakistan received soft loan amounting to $250 million which had been increased to $800 million.
“And during 2005 and 2006 the WB will be providing $2.4 billion to Pakistan on similar soft terms,” Mr Wall said.
Referring to Pakistan’s budget deficit, he said it would be limited and should not cause any problem to the government. He, however, emphasized that the world needed to look into the magnitude of the disaster seriously and play its due role to mitigate the suffering of the victims.
Mr Wall proposed that those who had no way of earning in quake-hit regions should be given cash grants to help start small businesses. He called upon the government to issue ‘Indented Cards’ in the quake-stricken areas, especially to women, so that they could help themselves in this hour of need.
Pakistan, he said, should be proud of as a nation as the character of its people had been tested. The spontaneous response by the army and generous volunteerism shown by the Pakistanis was amazing, he added.
Mr Wall said he himself had visited parts of Balakot and other areas and found volunteers working there efficiently.
