ISLAMABAD, Dec 16: The World Bank has approved a $400 million emergency recovery credit (ERC) to support the earthquake recovery and reconstruction effort in Pakistan over a three-year period.

An announcement of the bank said on Friday that the credit would support Pakistan’s efforts to reduce the immediate suffering and restore livelihoods, reconstruct housing, and help finance needed imports.

This follows the bank’s initial commitment of $475 million in October as part of the bank’s overall pledge of $1 billion for earthquake recovery.

The credit from the International Development Association (IDA), the World Bank’s concessionary lending arm, carries a 0.75 per cent service fee, a 10-year grace period, and a maturity of 35 years.

The credit will support housing reconstruction ($220 million), livelihood support ($85 million), import financing ($85 million), and capacity building ($10 million). It can also make funds available for any financing gaps identified in other sectors such as social protection, health, education, roads, agriculture, water supply, and other infrastructure.