WB to provide $1.255b to Pakistan

ISLAMABAD (APP) - The government and World Bank here on Tuesday signed three agreements of $ 900m for financing development projects in different sectors.
Secretary Economic Affair Division, Farrakh Qayyum and WB Acting Country Director, Saeed Habsi inked the MoU on behalf of their respective sides.
Secretary Education Department Punjab, Nadeem Ashraf, Secretary Education Department Sindh, Rizwan Memon and Kamal Hayat, CEO Pakistan Poverty Alleviation Fund signed the Project Agreements on behalf of their respective organizations.
According to the agreement, the WB would provide $ 350m for Punjab Education Sector Project, while about $ 300m for Sindh Education Sector Project and $ 250m for Pakistan Poverty Alleviation Fund. The overall objectives of these projects are to help the government enhance efficiency and productivity of sectors like education and Poverty Alleviation.
The terms and conditions for the education sector credits will remain as per the World Bank standard, maturity period of the credit is 35 years having a grace period of 10 years.
It said that the government has to pay service charges at the rate of 0.75pc and commitment charges at the rate of 0.5pc per annum. The objectives of the project are to improve access and equity and the quality and relevance of education in the province of Punjab.
The Project consists of the financing of the Punjab Education Sector Reform Program to enhance education sector expenditure and improved fiduciary environment.
$10m would be spent on technical assistance and building of institutional capacity of Punjabs education sector departments and agencies.
$ 300m would be spent on Sindh Education Sector Project with an objective to improve access and equity and the quality and relevance of education in the Province of Sindh.
The Project consists of the financing of SERP, provide financial support to Sindh in its implementation of the SERP through its programme to improve the fiscal sustainability and effectiveness of public expenditures.
Program would help improve education sector management and strengthen the functioning, capacity and accountability of provincial, district and school level management for education service delivery. It would also help to improve access to quality schooling in rural areas for girls and to improve the quality of teaching and student learning.
It will also provide technical assistance to develop or refine strategies to enhance the performance of incentive programs for public schools to improve transparency and build Sindhs Education sector capacity for the development of specialized skills needed for competency-based testing of teachers. The bank would also provide $ 250m for Third Pakistan Poverty Alleviation Fund Project. The objective of the project is to empower the targeted rural poor with increased incomes, improved productive capacity and access to services to achieve sustainable livelihoods.
The World Bank would also provide $ 355m to Pakistan for social sector development like education, healthcare, power generation and for poverty alleviation in the country.
In this effect, the meeting of the World Banks Board of Directors would be held on June 18 and June 29 respectively to approve financial assistance for the country.
The WB board of directors would approve about $ 100m for HEC and about $ 150m for social sector protection.
The WB would also approve the provision of $ 60m for social safety net to alleviate poverty from the country, beside this it will also give $75m for the eradication of polio in the country. Beside, the bank would also provide $ 30m for Thar coal development project, where huge coal reserves and power generation potential was identified to help the country overcome the shortfall of energy.