ISLAMABAD, April 21: The World Bank expects that poverty would start reducing soon in Pakistan as the country surpassed most of the targets set by the bank under its country assistance strategy (CAS).

"Continued strong progress in implementing reforms has set the stage for faster growth and poverty reduction in Pakistan," noted the executive board of the bank. Discussing the progress report of the World Bank's CAS for Pakistan, the board agreed that Pakistan has made good progress in implementing economic reform programme.

The board also concurred that progress in implementing the bank's country strategy has been positive, and that its objectives remain valid in light of the newly completed Pakistan poverty reduction strategy.

The progress report took stock of where the bank was regarding the implementation of its strategy, and whether or not the strategy needed to be adjusted to reflect new political or economic realities in the country.

The board reviewed developments in Pakistan since the WB last formulated a CAS for Pakistan in 2002. The newly elected government, which came to power following the elections of Nov 2002, has continued the ambitious reform programme launched by its predecessor.

Subsequently, in Dec 2003, the country completed its Poverty Reduction Strategy Paper (PRSP), and a joint staff assessment of the paper was presented to the board last March.

"This is very exciting moment for Pakistan," said John Wall, World Bank's country director for Pakistan. "In the face of significant challenges, Pakistan has remained firmly on the path of reform.

Having taken a steep path out of the debt crisis and re-established its financial credibility, Pakistan is reaping the benefits of good economic management and is ready for a second round of reforms."

The progress report recognizes the remarkable improvement in Pakistan's economic performance, which has been stronger than foreseen in the CAS, with GDP growth accelerating to above five per cent in 2003 while inflation has remained low at 3.1 per cent.

Key external and domestic balance have improved while the debt burden has been reduced. Mr Wall said that the government's strong ownership of the strategy, its effective commitment to macroeconomic stability and significant progress in implementing structural reforms have set Pakistan on a course to significantly reduce poverty. "We believe that Pakistan is on the right track to improve the lives of its poor people."