DEPARTMENT FOR INTERNATIONAL DEVELOPMENT (DFID
The Department for International Development (DFID) is the British government department responsible for Britain’s contribution towards international efforts to eliminate poverty. We work in partnership with developing country governments and other international development agencies. We also work with business, civil society and the research community.
For more Information please visit DFID Website
The Pakistan Earthquake – Two Years On
At 9am on Saturday 8 October 2005, an earthquake measuring 7.6 on the Richter scale left more than 70,000 people dead and made 2.5 million people homeless. The second anniversary of the largest natural disaster in Pakistan’s short history is an opportunity to look back at the role DFID played in saving lives in the immediate aftermath and the work we are still supporting.
Humanitarian response
The UK’s response to the immediate humanitarian situation was enormous. DFID provided £56m, so survivors could have winterised tents, clean water, medicines are other basic items in the days and weeks ahead. With DFID support Rapid UK was able to fly out a team of 84 rescuers and four sniffer dogs to the worst hit areas. Out of a total of 24 people pulled out alive, 13 were rescued by Rapid UK. In addition to the Government’s response, it has been estimated that the UK public contributed around £70 million to the relief effort, including roughly £41m collected by the Disasters Emergency Committee (DEC) group of NGOs.
DFID Minister Shahid Malik was in Islamabad when the earthquake struck. You can read his reflections on the experience and the UK’s response here
Reconstruction and rehabilitation
Reconstruction and Rehabilitation
DFID Pakistan has committed a further £70m to help with the long term rebuilding of the affected areas. Our focus from an early stage has been to work closely with the Government of Pakistan and major partners to help put in place a framework and institutions for meeting the huge challenge of reconstruction and rehabilitation.
From the £70m available, we are providing up to £14m to help improve the Government of Pakistan’s ability to manage the reconstruction effort. This includes support to restore government facilities, deploying essential staff to earthquake affected areas, providing support for the World Health Organisation’s new disease early warning system (case study) , and helping the NGO Merlin provide health care services to those made homeless and living in transitional camps.
The most innovative aspect of our approach has been to allocate up to £35m to the Pakistan Government’s Earthquake Reconstruction and Rehabilitation Authority (ERRA), which has overall responsibility for the reconstruction effort. Our funds can be used by ERRA for its own priorities, including rebuilding health centres, schools and other key public facilities. Recent field trips to the affected areas have all confirmed that ERRA funded construction and reconstruction work is well underway and good progress is being made. Using Sector Budget Support to support a reconstruction programme following a major disaster is a first for DFID and we will continue to monitor its progress closely.
Reconstruction and Rehabilitation
Lt Gen Nadeem Ahmed, Deputy Chairman of ERRA, has paid tribute to the work of DFID. In a recent film on DFID’s work in Pakistan he noted that: "DFID’s contribution soon after the earthquake was I think exceptional by any standard. I think the biggest contribution that I see is DFID’s assistance in helping us to evolve as an organisation which is responsive to the need of the earthquake reconstruction and rehabilitation, and I think that was a phenomenal contribution."
A decision will be made in early 2008 on how the remaining £21m will be spent.
Pakistan to scale up access to financial services for the poor
The Government of Pakistan has recently formulated a financial inclusion strategy to transform microfinance coverage from 1 million to 3 million clients by 2010, offering millions more the opportunity to move out of poverty.
The number of people in Pakistan accessing microfinance has increased by 85% over the last three years. This comes as a result of Government action to expand the sector, most notably by:
* Creating an enabling environment for the microfinance industry.
* Licensing six microfinance banks (so far)
* Enabling a large number of NGOs to provide microfinance services throughout the country.
* Converting the non-performing, state-owned banking industry into successful private sector businesses.
Pakistan_to_scale_up_access_to_financial_services_for_the_poor
Pakistan_to_scale_up_access_to_financial_services_for_the_poor
Muhammad Yunus, Managing Director of Grameen Foundation and winner of the Nobel Peace Prize, visited Pakistan this month to discuss expansion of the sector and to give practitioners and policy makers the opportunity to learn from the Bangladesh experience.
There are currently around 1 million active microfinance clients in Pakistan, but with a potential market size of 10 - 20 million there is considerable room for expansion. The Government of Pakistan is seeking support from donors, including DFID, to help implement its strategy, which is being led by the State Bank of Pakistan.
So what is DFID Doing?
During a recent visit to Pakistan by Richard Boulter (Acting Head of Profession for Private Sector Development), a team of donors and financial institutions met with the Governor of the State Bank to discuss how best to support the growth of pro-poor financial services, including microfinance, support for small and medium enterprises, rural finance, and low-cost housing.
This high level engagement builds on DFID Pakistan’s existing programmes such as an Access to Finance Study to assess demand for financial services in Pakistan. The programme has already resulted in some far-reaching policy changes, by supporting dialogue between the industry and government policy makers. The DFID-funded Pakistan Microfinance Network has been one of the key institutions involved in the process and has lead on representing the microfinance industry.
DFID Pakistan is also supporting access to financial services for poor women through funding the Kashf Foundation. Kashf has emerged as a highly successful provider of microfinance in Pakistan. A recent DFID review showed that Kashf has achieved a 100% expansion in outreach in the last 16 months, whilst maintaining financial sustainability. Kashf currently has 150,000 clients and aims to reach 300,000 poor people over the next 3 years.
DFID is also funding the send money home website to increase and formalise remittances to Pakistan (
Sending money home - Free money transfer advice). The website provides information and comparative analysis of remittance services. DFID’s funding will also support an official launch of the website and the distribution of promotional material to the Pakistani diaspora in the UK.
The State Bank Governor has also confirmed her participation as one of the key presenters at the DFID funded Financial Inclusion Conference in London in June.
UN Reform to be Piloted in Pakistan
On 1 March, Pakistan formally announced that it would be one of eight pilot countries for implementing UN Reform. A high-level launch attended by the Prime Minister of Pakistan, Shaukat Aziz, UN Assistant Secretary-General and Regional Director for Asia and the Pacific Hafiz Pasha, and UN Resident Coordinator Jan Vandemoortele, brought together senior government officials, ambassadors, donors and civil society.
UN Reform is based upon the concept of "One UN" at country level, as recommended by the recent High Level Panel on UN Reform. "One UN" will deliver a more efficient UN system which can effectively support the government and people of a country in implementing national development strategies and policies. As a result it will enable the UN to better support the work of developing countries to meet the Millennium Development Goals.
The Government of Pakistan and the UN have already agreed a set of principles, objectives and instruments to achieve "One UN" in Pakistan. A High Level Committee has been set up to be the decision-making body for issues relating to UN Reform in Pakistan, and includes representatives from the government, donors, UN agencies and civil society.
UN Resident Coordinator Jan Vandemoortele said that the UN Country Team considers government leadership of the reform process essential. Responding to Pakistan’s national development priorities, the UN system will comprise one programme focusing on five areas: health, education, poverty reduction, HIV/AIDS and disaster management. One financial framework will strengthen coherence of all UN resources.
Dr Hafiz Pasha said "One UN will initiate a new era of effectiveness and efficiency in serving the developmental agenda of Pakistan. We have all the ingredients of a successful reform process."
DFID Pakistan is playing a leading role in working with the Resident Coordinator and major donors to move the agenda forward, and has emphasised that the scale of the reward will match the scale of UN Reform ambition and level of achievement.
Development Assistance British High Commission, Islamabad
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