ISLAMABAD, (Financial Updates): The World Bank raised its flood-related support in the current fiscal year to $1 billion. However, the bank indicated the response of donors to the floods will depend on the government’s ability to deliver in this area.
According to a statement issued by the WB mission here on Thursday, the WB President Robert B. Zoellick met with Finance Minister Hafeez Shaikh on Wednesday and told him that the bank would raise its flood-related support to $1 billion from $900 million and emphasized the Bank Group’s commitment to help Pakistan recover from the worst floods in its history.
The money will come from the Bank's fund for the poorest countries, the International Development Association (IDA), which means that the loans are concessional and carry no interest payments. This funding is already programmed money for Pakistan that is being diverted to meet immediate needs.
“As the surging Indus River devastates Pakistan, the country needs the world’s support to meet urgent humanitarian needs: food, clean water, sanitation facilities, medical and nutritional supplies, and vaccines,” said Zoellick after meeting Shaikh. “At the same time, Pakistan’s reconstruction and recovery also require long-term support. The World Bank is committed to helping the people of Pakistan during this time of need and has made $1 billion available to finance immediate recovery needs and longer-term reconstruction.”
“We need to respond strongly to the crisis at hand, but we need to do it without losing sight of important economic reforms,” said Zoellick. “This disaster underscores Pakistan’s fiscal vulnerability and dependence on foreign aid. Renewed commitment to governance and fiscal reforms will be important to mobilize domestic revenues and ensure that funds reach the poor people it is intended for. The response of donors to the floods will also depend on the government’s ability to deliver in this area.”
Zoellick and Shaikh also discussed the government’s economic reform program, institutional and governance arrangements, and the need to mobilize additional resources for flood reconstruction.
The World Bank management assured Shaikh that in addition to financial support, the Bank Group is willing to assist the government of Pakistan in setting up instruments to track aid flows, and establishing sound procurement practices, grievance mechanisms, and robust monitoring and evaluation systems.
According to a statement issued by the WB mission here on Thursday, the WB President Robert B. Zoellick met with Finance Minister Hafeez Shaikh on Wednesday and told him that the bank would raise its flood-related support to $1 billion from $900 million and emphasized the Bank Group’s commitment to help Pakistan recover from the worst floods in its history.
The money will come from the Bank's fund for the poorest countries, the International Development Association (IDA), which means that the loans are concessional and carry no interest payments. This funding is already programmed money for Pakistan that is being diverted to meet immediate needs.
“As the surging Indus River devastates Pakistan, the country needs the world’s support to meet urgent humanitarian needs: food, clean water, sanitation facilities, medical and nutritional supplies, and vaccines,” said Zoellick after meeting Shaikh. “At the same time, Pakistan’s reconstruction and recovery also require long-term support. The World Bank is committed to helping the people of Pakistan during this time of need and has made $1 billion available to finance immediate recovery needs and longer-term reconstruction.”
“We need to respond strongly to the crisis at hand, but we need to do it without losing sight of important economic reforms,” said Zoellick. “This disaster underscores Pakistan’s fiscal vulnerability and dependence on foreign aid. Renewed commitment to governance and fiscal reforms will be important to mobilize domestic revenues and ensure that funds reach the poor people it is intended for. The response of donors to the floods will also depend on the government’s ability to deliver in this area.”
Zoellick and Shaikh also discussed the government’s economic reform program, institutional and governance arrangements, and the need to mobilize additional resources for flood reconstruction.
The World Bank management assured Shaikh that in addition to financial support, the Bank Group is willing to assist the government of Pakistan in setting up instruments to track aid flows, and establishing sound procurement practices, grievance mechanisms, and robust monitoring and evaluation systems.
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