ISLAMABAD: World Bank (WB) will extend loans amounting to $350 million for expansion in the scope of Benazir Income Support Program (BISP), higher education support program and improvement of the irrigation system in Sindh.

An agreement in this respect was signed at a ceremony held here Tuesday. Secretary Economic Affairs Farrukh Qayyum signed the accord from Pakistan’s side while the World Bank’s Acting Country Director Said Al-Habsy signed the agreement from the bank’s side.

Addressing the ceremony Secretary Economic Affairs Farrukh Qayyum said the World Bank would extend a credit of $200 million for the Benazir Support Income Support Program under World Bank Social Safety Net Development Policy, $100 million for the promotion of higher education and upgradation of educational standards under Higher Education Support Program and IDA credit of $50 million for brick lining.

He indicated that the World Bank would only receive 0.75 per cent in service charges and 0.5 per cent in commitment charges on these interest free loans.

The loan provided under higher education support programs would be spent for improvement in research work, enhancing opportunities for higher education and improvement in the standards of education, he informed. Operations related to Benazir Income Support Program would be expanded through social safety net development policy, he added.

The World Bank’s Acting Country Director Said Al-Habsy while speaking on the occasion said the Benazir Income Support Program for providing financial assistance to the poor was a transparent program and it was a matter of pleasure for the bank to provide financial assistance in this respect.

Responding to a question he said the World Bank was bringing changes to its economic strategy for Pakistan which would be announced in December. IBRD loans would stand restored for Pakistan following the announcement of the new strategy, he hoped.—Online