WB directs $6.6b to SAsia; $1,609 million to Pakistan

WASHINGTON - The World Bank Group committed US$6.6 billion in fiscal year ended June 30 to South Asia, much of it focused on helping the countries there cope with the impact of the global economic crisis.The Bank gave Pakistan $1,609 million to support the countrys various programmes during the year.Key to the Banks strategy in South Asia, where India is the largest borrower, is scaling up existing programmes that are delivering results, the group said Thursday.In India, a $400 million loan was extended to improve access to finance for Indias Small and Medium Enterprises (SMEs) which face serious challenges in accessing adequate and timely financing on competitive terms. Within South Asia, India was the largest borrower from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), accounting for $2,242 million.Bangladesh, with $1,096 million, was the third largest borrower after India and Pakistan.The Bank also provided $500 million to support the Government of Pakistans programme to regain and maintain economic stability and steer the economy back onto a higher growth path.With an increase of US$1.1 billion over the previous year, the Bank invested in 89 projects to promote economic growth, fight poverty, and assist private businesses, including nearly US$2 billion in infrastructure financing, a critical sector to provide the foundation for rapid recovery from the crisis and job creation.South Asian countries have been hard hit by a series of crisesfood, then the fuel crisis, followed by the global financialcrisis, said Isabel Guerrero, World Bank Vice President for South Asia.In response to the impact of these successive crises much of our work has been refocused to provide rapid financial assistance and policy advice to reverse the slowdown in growth and investment and to protect the poor and most vulnerable people.Globally, the World Bank Group committed US$58.8 billion in fiscal year 2009, up 54 percent from fiscal year 2008.Commitments from IBRD, which provides financing, risk management products, and other financial services to countries, rose sharply in FY09 to $32.9b for 126 operations, from $13.5b the previous year.Commitments from IDA, which provides interest-free loans and grants to the worlds 79 poorest countries, totalled a record $14b in FY09, up 25pc from $11.2b in FY08.The IFC, which makes equity investments, and provides loans, guarantees, and advisory services to private-sector business, committed close to $1.2b in 47 projects in FY09 in South Asia.