The reconstruction of infrastructure in the earthquake devastated areas of the North West Frontier Province (NWFP), which is resistant to quakes, will cost $1.5 billion, the World Bank said in a report. The earthquake caused direct losses of $1 billion to the NWFP and indirect losses of $300 million, the report said. It added that the indirect losses are reduction in the flow of goods and services and other economic consequences such as increased expenses, curtailed production and diminished revenue that arises from direct damage to production capacity and social and economic infrastructure. The report said that in addition to the $1.5 billion requirement, money was needed to compensate families for deaths and injuries. The $1.5 billion does not include the cost of relief being provided to the survivors either, the report said adding that it is clear that the NWFP suffered a serious blow in the earthquake. It said that although there are generous offers from the international community, most of the requirements would have to be met from Pakistan's own sources. The NWFP's budget will not be able to accommodate a significant share of relief and reconstruction activities. The report said that the NWFP government may have to adjust its expenses in the next budget, reprioritize investment, postpone some projects, mobilize resources from within the province and take more loans from abroad.
