World Bank sets $5.5 billion in aid for Pakistan

By AFP
Published: December 23, 2011
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Country director says the World Bank has responded flexibly in the face of challenges Pakistan has gone through.

Country director says the World Bank has responded flexibly in the face of challenges Pakistan has gone through.

WASHINGTON: The World Bank on Thursday said it would provide Pakistan with $5.5 billion in development aid over the next two years.

“The Bank has responded flexibly in the face of the tremendous challenges Pakistan has gone through over the past year or so,” said its Pakistan country director Rachid Benmessaoud.

“We will continue our strong support to Pakistan, while keeping a keen eye on implementation to ensure that these efforts translate into real results on the ground,” he said.

The bank’s progress report on its Pakistan program said its efforts had been disrupted over the past two years by the devastating floods of 2010-2011, ongoing security problems as well as “slow economic reform”.

“Shifting the focus and resources in response to the floods led to a delay in infrastructure investments,” it said.

It said Pakistan’s economic recovery from the floods and other problems remains slow, with growth of 3.9 percent expected next year.

“A range of governance, corruption and business environment indicators suggest that these areas remain a challenge,” it added.

The funds include $4 billion in development assistance and $1.5 billion from the bank’s International Finance Corporation, which helps private sector firms.

“We are committed to helping Pakistan realize its potential especially in key sectors such as infrastructure, renewable energy and agribusiness,” said IFC Middle East director Mouayed Mahlouf

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Reader Comments (27)

  • woohoo
    Dec 23, 2011 - 9:01AM

    woohoo!! all the best

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  • khalid
    Dec 23, 2011 - 9:06AM

    Finally stoppage of nato supply is doing some work.

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  • Ashok
    Dec 23, 2011 - 9:10AM

    Phew – Meekal Ahmed can give a sigh of relief. But we should wonder – why is it that the world bank and not the IMF could supply these funds – can he elaborate?

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  • sam
    Dec 23, 2011 - 9:31AM

    there you go Pakistanis. You prayers come true.So you got another life saving injection. it may keep you going for 1 year but what after that.

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  • Zalim singh
    Dec 23, 2011 - 10:00AM

    cool cash

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  • antanu
    Dec 23, 2011 - 11:03AM

    @Ashok:
    Whats the difference?

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  • antanu
    Dec 23, 2011 - 11:04AM

    @sam:
    US has also been put on life saving drugs through $800 billion from China.Dont forget.

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  • Pakistani
    Dec 23, 2011 - 11:10AM

    Aid for what… to open nato supply?

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  • Nand
    Dec 23, 2011 - 11:49AM

    When Pakistan considers USA its enemy, USA will veto and block this aid. In the last few weeks, people themselves have said NO AID or help.

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  • Mirza
    Dec 23, 2011 - 11:55AM

    Are we going to be thankful of these Godless Democratic Western countries for their contributions?

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  • Baba Ji
    Dec 23, 2011 - 11:56AM

    Dang it !!!!!!!!!! not again please ………… No we don’t want it

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  • Acorn Guts
    Dec 23, 2011 - 1:53PM

    Oh yes, another 2 months (at least) of squandering and embezzling guaranteed.

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  • saad
    Dec 23, 2011 - 4:32PM

    Secularize the government and law and order will be reformed to the point where it will eradicate the corruption on a large scale in almost every industry. Corrupt politicians, businessmen/women, and all others will be justly dealt with from these new logic based laws instead of Islamic based laws. From this we will be able to have a significantly higher growth rate like India, China etc. because the funds will be righteously allocated and we will be able to pay off these loans and become a great nation once and for all. #occupypakistanRecommend

  • Meekal Ahmed
    Dec 23, 2011 - 5:27PM

    @Ashok:

    The World Bank is a development agency. The IMF is not.

    The Bank mainly provides aid for development projects. The IMF provides cash that you put in your reserves in exchange for agreed policy conditions — macroeconomic and structural.

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  • Cautious
    Dec 23, 2011 - 5:52PM

    Wake up people — who do you think controls the World Bank? Do you honestly believe that any money will be forthcoming if the USA wants it stopped. This is the carrot – and the USA retains the power to take this carrot away.

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  • Fn723
    Dec 23, 2011 - 5:53PM

    Aid, with strings attached
    When will we stop depending on aid? Those who give, mostly have ulterior motives.

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  • Cosmo
    Dec 23, 2011 - 7:16PM

    @antanu:
    Well the difference is that while US got it for free on Demand, Pakistan had to sell it soul to get what it wants. Simple, aint it?

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  • Ali S
    Dec 23, 2011 - 8:38PM

    Hopefully it is utilized how it should be and doesn’t just line the pockets of the fat cats

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  • antanu
    Dec 23, 2011 - 10:41PM

    @Cosmo:
    Begger is always a begger..you can not differenciate between them for your convinience.

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  • Nomi
    Dec 24, 2011 - 3:33AM

    And the money goes to… Zardari Tarakiyati Funds :)

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  • Observer
    Dec 24, 2011 - 3:36AM

    Who do you think would have made this deal with the ‘devil’ but the ‘devil’ (Kayani) himself. Without funds his brigadiers and the rest of the army will start ditching him. He. Needs funds to feed his army, to keep Pakistanis at subsistence level for few more years in order to buy few more years of power for himself. Pakstani army is the only guaranteed of Pakistani people and only institution which Pakistanis belueve in. Million dollar question- what did Kayani give in return?

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  • Ashok
    Dec 24, 2011 - 4:19AM

    @Meekal Ahmed:
    Thank you for the explanation Mr. Ahmed. I frankly don’t know much about the IMF – structurally or operationally – I guess I never bothered to find out! This clears things up a bit. Regards.

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  • Cynical
    Dec 24, 2011 - 4:27AM

    Great.Something to celebrate in a long time.
    I’m gonna throw a party tonight.

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  • Maria
    Dec 24, 2011 - 4:49AM

    @antanu: The world and especially western nations should pay Pakistan the trillion dollars it owes the nation for defeating the Soviet Union in Afghanistan and ending the Cold War by bringing about the collapse of the Soviet Union. The Western nations who got off by not paying Pakistan it’s due are the real cheapskates. Think about how much mess and instability they left behind and how cheap they got their work done for.

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  • OA
    Dec 24, 2011 - 7:34AM

    @Cosmo – Didn’t Pakistan actually had a soul!

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  • cosmo
    Dec 24, 2011 - 11:32PM

    @antanu: If that brings peace to you, well then be happy and if that helps you hide the ugly side then good luck !!

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  • NDQ
    Dec 26, 2011 - 3:16AM

    Good news for Zardari Ali baba and his forty thieves (ministers) as well as top military officers. 15% will go to Zardari and the rest will be pocketed by military officers. Nothing will be spent on dams or infrastructure development or so called rehabilitation of flood victims. Pakistan has less than $10 billions to his name which is mostly loans to be paid back soon with over $60 billions total debt and debt is rising. God continue to bless Pakistan’s president and top military brass.

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