ISLAMABAD, Feb 19: The World Bank plans to increase from this year soft-term assistance to Pakistan's infrastructure, social sector development and water and power sectors to improve investment climate and reduce poverty.
Official sources told Dawn on Thursday that the bank would finalize its assistance strategy to Pakistan on the conclusion of Pakistan Development Forum conference by the mid of March.
Bank's vice-president for South Asian Region Praful C. Patel met Finance Minister Shaukat Aziz on Thursday and discussed the proposed funding strategy. The bank officer will also call on President Gen Pervez Musharraf on Friday.
The World Bank's annual assistance to Pakistan at present is about $700 million. Pakistan has been asking the bank to increase this amount to $1 billion per annum with effect from the current year.
Before the scheduled forum, the bank would start consultations with various government agencies and other lenders to identify specific sectors and projects for assistance.
The sources said the PDF conference would be of particular significance this year because it would set the tone for future lending programmes to Pakistan in the improved economic conditions.
Pakistan, these sources said, has however asked the bank that it would welcome only the International Development Assistance grants for their low-cost service charges because its policy was to get rid of the costly debt.
An official statement said the World Bank noted with satisfaction Pakistan's economic growth and supported its economic strategy to achieve higher growth rate through increased spending on the Public Sector Development Programme.
The World Bank, as an international development partner, would continue to support Pakistan's endeavours to improve social and physical infrastructure. The bank would provide increased assistance under IDA grants and IRBD to improve infrastructure to generate economic activity, improve investment climate and to reduce poverty through achieving higher growth trajectory, the statement quoted Mr Patel as saying.
The two sides also discussed convening of Pakistan Development Forum in March this year. It was agreed that the forum would help articulate strategies for economic growth and focus on additional infrastructure needs to prepare Pakistan for sustainable growth.
The finance minister said Pakistan would continue to welcome the World Bank assistance. He said Pakistan had chalked out growth strategies to seek World Bank support in accelerating economic growth in the country.