World Bank approves $75 million loan for rehabilitation of IDPs

$62 million will be used to provide cash grant to around 120,000 IDP families affected by ongoing military offensive


Shahbaz Rana August 27, 2015
The basic aim of the project is to support the early recovery of approximately 120,000 displaced families from FATA through two cash grants. PHOTO: REUTERS

ISLAMABAD: The World Bank approved on Thursday a $75 million loan for Pakistan, majority of which will be disbursed among internally displaced persons (IDPs) as a cash grant aimed at facilitating their return from the camps to their homes.

About 87% of the $75 million loan or $62 million will be used to provide cash grant to around 120,000 or over one-third of the total families affected by the ongoing military offensive in tribal areas. Each family will receive Rs49,000 cash grant in two phases.

The Washington-based lending agency has given the concessionary loan for a period of 25 years, including a grace period of 5 years.

Read: Post-displacement: IDPs not pleased with repatriation

Families to be benefitted from the WB’s 'Fata Temporarily Displaced Persons Emergency Recovery Project' are from five Fata agencies, North Waziristan, South Waziristan, Orakzai, Kurram and Khyber, according to a handout issued by the WB’s local office.

The basic aim of the project is to support the early recovery of approximately 120,000 displaced families from Fata through two cash grants.

Under the project, a one-time early recovery grant of Rs35,000 per family and a livelihood support grant of Rs16,000 per family in four monthly instalments of Rs4,000 will be disbursed among families belonging to these five agencies.

As many as 336,762 families were displaced due to Operation Zarb-e-Azb and over 240,000 were from these five agencies.

Read: China to provide $10m to Pakistan for rehabilitation of TDPs

The government has estimated the total cost of rehabilitation and reconstruction at Rs75 billion or $750 million. Out of this, the rehabilitation cost is estimated at $112 million.

While an amount of $62 million will be given in cash grant, $3 million is allocated for providing child-health facilities.

However, $10 million or 13.3% of the total approved loan has been set aside for stakeholder consultation, social mobilisation and management.

The World Bank's estimates show that out of 336,762 displaced families only two-thirds will be accessing the cash support programme. However, due to limited size of financing envelope, the WB will fund only 120,000 families.

The project will continue its support to beneficiaries for a period of three years based on the return schedule laid out by the government of Pakistan.

The military had launched the offensive against militants in June last year and its revised plans show that the final batch will be returning homes by end of next year, according to officials of Ministry of Finance.

Under the programme, if the beneficiary family has children under two years of age then the family will be eligible for additional payments of Rs7,500 or $75. This additional amount will be provided in three equal instalments for promoting positive health seeking behaviour of families for their children, according to the WB.

The WB said Fata was lagging behind in terms of child health indicators compared to the rest of Pakistan. In the aftermath of the militancy crisis and with the return of displaced families, the already inadequate child health outcomes are expected to deteriorate further.

“The safety net delivery systems built through this project will enhance the capacity of the government to better respond to future crises, by strengthening the emergency response safety net delivery systems in Fata in a sustainable manner”, said Rachid Benmessaoud, World Bank Country Director for Pakistan.

COMMENTS (2)

iWarnU | 8 years ago | Reply For God's sake now! Please be an HONORABLE nation of the world and stop using your poor and IDP for AID PACKAGES. If you have taken it or were honest then please use every Penney of it on IDP's most urgent need, not where you can get kick-back too from park, bus, school, ground wor etc etc I like to remind fellow brothers if you steal this money for your own family or luxury or own betterment.... it will only bring Heavenly calamity and wrath of God on you!
suleman | 8 years ago | Reply Time to make some money out of people misery.
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