WASHINGTON, Oct 11: The World Bank believes that events following the September 11 attacks on New York and Washington have dealt Pakistan a “sharp economic blow”, estimated to cost the country at least US $1 billion this year alone, and fears that the figure could rise if the situation in Afghanistan is not resolved in the short term.

This is stated in a World Bank press release issued after talks between bank president James Wolfensohn and visiting Federal Finance Minister Shaukat Aziz on Wednesday. Mr Aziz was said to have assured Mr Wolfensohn of Pakistan’s commitment to stay the course with the reform programme and accelerate its implementation.

The finance minister also met the chairman of the Export-Import Bank of the US, Mr John E. Robson, and discussed financing of transactions to supply US commercial aircraft to Pakistan.

While there is renewed interest in Pakistan following Islamabad’s decision to join the anti-terrorist campaign, the World Bank press release points out that much before this, in March, a gathering of international donors had commended Pakistan’s commitment to address long-standing problems of poverty, education and health and, in parallel, to tackle corruption and other policy and institutional constraints to business activity and growth.

World Bank lending to Pakistan in the previous financial year is $374 million and is slated to increase during the current fiscal year.

Mr Wolfensohn was reported to have assured Mr Aziz of the Bank’s continued support. “We have been immensely impressed by Pakistan’s reform programme, which started two years ago,” he said. “Of course, right now, as the country faces a particularly challenging period, we will be there to help it keep that reform programme on track. It is a programme which targets poverty and which brings a powerful new discipline into the country’s institutions to remove unnecessary obstacles to growth. It is a real opportunity for all Pakistani people to build a sustainable future and we must not lose sight of that, even at this most difficult time.”

At the Ex-Im Bank, the establishment was discussed of a joint task force consisting of senior officials from the bank, the Overseas Private Investment Corporation (Opic) and the Trade Development Association to explore ways to support US exports and work out a privatization programme for Pakistan’s health, education and oil and gas sectors.