PESHAWAR, Oct 8: The World Bank has assured the NWFP government of a $90 million soft loan to be provided towards the end of this year under the SAC III programme.
It may be mentioned that two phases of the SAC programme aimed at improving social sectors in the province have already been completed. The third phase has been renamed as Developmental Policy Credit (DPC).
A WB mission called on NWFP Senior Minister Sirajul Haq on Saturday in this regard and expressed satisfaction over the steps taken by the provincial government for improving the social sector.
The team informed him of the bank’s decision to provide the loan tranche by November or December this year.
On this occasion, NWFP finance secretary Ziaur Rehman, special secretary finance Aurangzeb-ul-Haq and provincial finance controller Ahmad Hassan were also present. The WB team included Paul Wade, Zarina Naqvi and Khalid Ikram.
Welcoming the bank’s decision, the senior minister said that the NWFP government had ensured completion of all conditions of the programme while the loan was long awaited.
He said the government, under its financial management policy, had taken certain steps, including imposing cuts on non-developmental expenditure, to make both ends meet within the available meagre resources.
However, the government still faced financial constraints and the federal government and international donors “should not close eyes on our plight” and extend some financial help “to meet our developmental needs”.
Sirajul Haq said that reforms introduced and measures taken by the provincial government for improving social sectors were likely to show their positive impact in the near future.
He said the provincial government would also ensure 100 per cent completion of the rest of the targets in human resource and irrigation, adding that these were in the larger interest of the province and its people.
He said the government was focusing attention on cottage and medium-sized industries rather than looking for mega industrial projects. The private sector was being fully encouraged to take initiative. This would prove a milestone in ushering industrial revolution in the province.
Paul Wade acknowledged that 80 per cent targets set by the WB in human database and irrigation sectors had been met, which was quite satisfactory, but meeting of the conditions 100 per cent would let WB release the loan in bulk.
He, however, said that it had been decided that provision of soft loan under BPC would be ensured later this year.
He assured that WB would start work for provision of loans for the next phases of DPC. The NWFP government would also start spadework in this regard.