World Bank allocates $1.8b for Pakistan this year

Published: April 23, 2012
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Funds allocated primarily for projects in the energy, water sector.

Funds allocated primarily for projects in the energy, water sector.

WASHINGTON: The World Bank has allocated an unprecedented amount of $1.8 billion for Pakistan’s development projects in the energy and water sectors. Finance Minister Dr Abdul Hafeez Shaikh made the announcement after holding a meeting with Vice President of the World Bank, Isabel Guerrero, on the sidelines of the IMF-World Bank annual spring gathering of economic leaders from around the world.

The financial institution has also expressed its willingness to assist with financing the multi-year Dasu dam project, to be built in the Kohistan area on the River Indus, with a 1,500MW power generation capacity. They have already approved the power generation enhancement project.

“The World Bank allocating this unprecedented amount in one year is a big sign of confidence in Pakistan’s ability to accomplish development for its people,” Dr Shaikh said.

The amount follows last year’s $1.2 billion in assistance, and will be spent on upgrades and completion of development projects in the energy and water sectors as well as infrastructure, social and reform programs.

“The World Bank vice president was appreciative of Pakistan’s economic performance in these difficult times of global economic and regional challenges,” the finance minister added.

Pakistan’s ambassador to the US, Sherry Rehman, also attended the meeting. “This signifies that both the international community and the financial institutions have a growing confidence in Pakistan’s dedication and ability to realise development for its people,” said Ambassador Sherry Rehman.

Vice President Guerrero expressed satisfaction with the measures Islamabad has taken to enhance its revenue generation, which has increased by 25% over the last nine months. Other measures include the continuing strong performance of the external sector, both exports and remittances and a healthy 4% GDP growth expected this year.

Dr Shaikh acknowledged the World Bank’s sustained cooperation with Pakistan, calling the financial institution a reliable development partner of Pakistan.

Published in The Express Tribune, April 23rd, 2012.

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Reader Comments (18)

  • Pinto
    Apr 23, 2012 - 8:57AM

    Now thats what u call a terror fund

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  • gp65
    Apr 23, 2012 - 9:11AM

    “The World Bank allocating this unprecedented amount in one year is a big sign of confidence in Pakistan’s ability to accomplish development for its people,” Dr Shaikh said.

    Alternatively, it could be a sign that US has leaned heavily on World Bank as a quid pro quo for opening up of the supply lines.

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  • Mogambo.
    Apr 23, 2012 - 9:40AM

    Even despite granting these loans the commom people think they should hate thr US for silly reason

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  • Mirza
    Apr 23, 2012 - 10:09AM

    Yet we continue to hate these rich western countries. They still are not as good as our friends like S. Arabia, UAE and likes.

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  • Truthbetold
    Apr 23, 2012 - 10:53AM

    Allocation is one thing, but hard cash actually handed over is quite another thing.

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  • How?
    Apr 23, 2012 - 11:33AM

    @Mogambo.:
    The common people hate USA for this that it is a loan. For them, it should be gifted.

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  • Atif Razzaq
    Apr 23, 2012 - 12:10PM

    Innocent Pakistani Nation
    They are not giving this amount free and Secondly, What about the elected Devil’s and Vampire Government, Do you think they will allocate this for the Development, Never ever…
    They elected to destroy the infrastructure of Pakistan, Now no need war this kind destruction is enough which current elected Devil’s Government is doing……..
    Stongly wish to have a geniune and true leadership, who really take care of the People and afraid from ALLAH about all their acts..
    Regards

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  • Anserali Khan
    Apr 23, 2012 - 1:22PM

    Please let us know what percentage of the above is TA ( Technical Assistance) which is Grant and what percentage is LOAN?

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  • Afzal Chun
    Apr 23, 2012 - 2:21PM

    Zardari aur Gilani along with Raja parvez Ashraf and other cronies, will eat up this fund even before it comes to Pakistan: Foreign Banks.. Dah-Dah.. Just as no aid ever gone to an ordinary Pakistani.

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  • dude
    Apr 23, 2012 - 3:11PM

    dear wb, strong textdont fund the terrorists!

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  • Lobster
    Apr 23, 2012 - 3:17PM

    @Anserali Khan:
    Don’t know about percentages you asked, only knows about 10% which is sure

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  • Ohoo
    Apr 23, 2012 - 4:26PM

    The more a country borrows money from IMF and World Bank, the more it loses its independence to make decisions concerning economy. Right now Pakistan are borrowing money like as if there is no tomorrow and think the money paid to them by these organizations as some kind of Jizya the world is obligated to pay to them.

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  • R. Khan
    Apr 23, 2012 - 4:46PM

    We are most STRANGEST people to be found anywhere on this planet since in spite of these huge loans from USA controlled agencies, we still hate them. We still keep on talking about our brotherly countries & all weather friend China, who keep their trillions of dollars in US treasury funds instead of sharing even one percent of that money for development projects of Pakistan. Please think logically & rationally!

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  • R. Arshad
    Apr 23, 2012 - 4:54PM

    We are the MOST complaing people & who believes in conspiracy in everything. In spite of dying due to hunger & thirst, we will prefer to die instead drinking & eating food provided by somebody since we will suspect that we are being poisoned. We MUST understand our position first globally before thinking we are very important. May God help our messed up mentality & weird priorities!Recommend

  • bilal
    Apr 23, 2012 - 8:21PM

    why we dont need this money. u can keep it with yourself.Recommend

  • Ali M
    Apr 23, 2012 - 8:26PM

    @R.Khan – to be fair, the Chinese did offer to help us with our energy crisis but we rejected! The government must know something we all don’t. But then again, it’s not like load shedding has decreased in the slightest, so maybe not?

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  • Apr 23, 2012 - 8:55PM

    How much is the usury on that 1.8b?

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  • Nawab
    Apr 25, 2012 - 2:16AM

    World Bank? Kinda obvious there USA :)

    Obviously a payout for opening up Afghan border and adopting a Pro-American policy.

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