World Bank sets $5.5 billion in aid for Pakistan

[Don Jaguar]

Country director says the World Bank has responded flexibly in the face of challenges Pakistan has gone through.

WASHINGTON: The World Bank on Thursday said it would provide Pakistan with $5.5 billion in development aid over the next two years.

“The Bank has responded flexibly in the face of the tremendous challenges Pakistan has gone through over the past year or so,” said its Pakistan country director Rachid Benmessaoud.

“We will continue our strong support to Pakistan, while keeping a keen eye on implementation to ensure that these efforts translate into real results on the ground,” he said.

The bank’s progress report on its Pakistan program said its efforts had been disrupted over the past two years by the devastating floods of 2010-2011, ongoing security problems as well as “slow economic reform”.

“Shifting the focus and resources in response to the floods led to a delay in infrastructure investments,” it said.

It said Pakistan’s economic recovery from the floods and other problems remains slow, with growth of 3.9 percent expected next year.

“A range of governance, corruption and business environment indicators suggest that these areas remain a challenge,” it added.

The funds include $4 billion in development assistance and $1.5 billion from the bank’s International Finance Corporation, which helps private sector firms.

“We are committed to helping Pakistan realize its potential especially in key sectors such as infrastructure, renewable energy and agribusiness,” said IFC Middle East director Mouayed Mahlouf

World Bank sets $5.5 billion in aid for Pakistan – The Express Tribune

 

[rama]

its not aid..its a soft loan which ur gov will hav to repay sumtime in future..if not invested properly..it may add to ur ext debt.

 

[Don Jaguar]

I like this attitude of U.S.

 

[DANGER-ZONE]

Treat for hungry GOVT & traitors.

 

[Pioneerfirst]

There is nothing harm to take loan for development projects, its rather better to get aid from any country.
Although indirectly its too from US approval.

 

[Don Jaguar]

its not aid..its a soft loan which ur gov will hav to repay sumtime in future..if not invested properly..it may add to ur ext debt.

How can you say its a loan?

Its not written in the news.

 

[Sugarcane]

How can you say its a loan?

Its not written in the news.

I think banks don't give money for free

 

[somebozo]

These so called aid do not benefit to the common people..its more like a bribe to zardari & geelani enterprises to turn a blind eye towards 26nov incidents..yet they have the balls to accuse army of conspiring against the democracy..honestly speaking.,.the people of pakistan do not want a demcracy where common man cannot afford two meals a day..this is a curse..not a democracy!

 

[T90TankGuy]

These so called aid do not benefit to the common people..its more like a bribe to zardari & geelani enterprises to turn a blind eye towards 26nov incidents..yet they have the balls to accuse army of conspiring against the democracy..honestly speaking.,.the people of pakistan do not want a demcracy where common man cannot afford two meals a day..this is a curse..not a democracy!

mate this is a loan , i doubt its aid
and asked for by your leaders , who probably know the need of the country a little better then most on this forum.

 

[peace lover]

Its a good move for the stabilization of Pakistan,hope it is spend for the right purpose.

 

[rama]

How can you say its a loan?

Its not written in the news.

mind it its a bank and banks does not distributes money for free..they actually invest it.

 

[Big Boss]

Good news to pakistan.

Now the GDP will how rosy picture

 

[Gin ka Pakistan]

The current GOP has broken all records of borrowing , why do they care its not they who will pay it back

 

[Hutchroy]

Country director says the World Bank has responded flexibly in the face of challenges Pakistan has gone through.

WASHINGTON: The World Bank on Thursday said it would provide Pakistan with $5.5 billion in development aid over the next two years.

“The Bank has responded flexibly in the face of the tremendous challenges Pakistan has gone through over the past year or so,” said its Pakistan country director Rachid Benmessaoud.

“We will continue our strong support to Pakistan, while keeping a keen eye on implementation to ensure that these efforts translate into real results on the ground,” he said.

The bank’s progress report on its Pakistan program said its efforts had been disrupted over the past two years by the devastating floods of 2010-2011, ongoing security problems as well as “slow economic reform”.

“Shifting the focus and resources in response to the floods led to a delay in infrastructure investments,” it said.

It said Pakistan’s economic recovery from the floods and other problems remains slow, with growth of 3.9 percent expected next year.

“A range of governance, corruption and business environment indicators suggest that these areas remain a challenge,” it added.

The funds include $4 billion in development assistance and $1.5 billion from the bank’s International Finance Corporation, which helps private sector firms.

“We are committed to helping Pakistan realize its potential especially in key sectors such as infrastructure, renewable energy and agribusiness,” said IFC Middle East director Mouayed Mahlouf

World Bank sets $5.5 billion in aid for Pakistan – The Express Tribune

This is a Debt Trap.

Pakistan already owes the IMF US$ 8.670 Billion which Pakistan has to start repaying next year.

It seems the major part of this World Bank Loan will be utilized in repaying the IMF Loan & Interest.

 

[SBD-3]

How can you say its a loan?

Its not written in the news.

He is correct, Aid can be a unilateral transfer but also below market rate loan. And its not necessarily bad, as my friends from the east often yell about. The most simple concept of growth theory in economics can be explained by the fact that the growth depends upon the savings generated by economy. Now with international context involved say there are two nations A and B and say A has excess savings and lesser growth opportunities while B has growth potential but insufficient savings. Now consider A can deploy these savings domestically to earn 2% while the country B's growth potential is offering possibly 10% .So if A lends its excess savings to B, both are better off since A earns more return than domestic employment of these savings while B gets these funds say at 10% while it can get the same from others at 15% so it effectively saves around 5% interest burden. Given these funds are employed in developmental projects, the project's cash flows serve as the means of repayment of loan. The only problem is that when these funds are misappropriated, otherwise its perfectly natural and fine.