The World Bank's Board of Executive Directors has discussed a new Country Assistance Strategy (CAS) planning document for Pakistan, which covers the period 2006 - 2009 and envisages a flexible lending programme of up to $6.5 billion - a substantial increase over the previous CAS period. In the current fiscal year (FY 2006), lending is around $1.5 billion, said a World Bank announcement after the meeting. The joint Bank/IFC CAS, which details the Bank's strategic approach to helping Pakistan achieve its development goals, places immediate priority on addressing the impact of the October 2005 earthquake. Up to $1 billion will be used to support reconstruction and recovery. An amount of $840 million has already been approved. In addition, based on Pakistan Government's priorities for sustaining growth and poverty reduction, the increase in lending will be primarily in infrastructure - mainly energy, water, and transport and human development. This strategy is designed to help Pakistan prosper," said John Wall, World Bank Country Director for Pakistan. He said Pakistan has moved from crisis to growth, laying the groundwork for sustained economic growth and significant poverty reduction. "We will substantially ramp up support to Pakistan and focus on the areas that are most critical for the country's poor and most vulnerable." During the 1990s, Pakistan's economic growth slowed, and progress in improving social indicators stagnated. Beginning in 2000, the government initiated a more wide-ranging and ambitious reform program resulting in a dramatic turnaround. Economic growth accelerated from the average of 3.3 percent during 1997-2002 to 8.4 percent in 2004/05. Improved fiscal performance, generous external support, and improved revenue administration have enabled the government to exceed targets for social spending, the bank announcement said. In his remarks, Praful Patel, World Bank Vice President for the South Asia region said Pakistan's recent growth performance is encouraging, but its continuation is by no means assured. Sustained growth, he added will require continued sound macroeconomic management along with further improvements in the investment climate and faster progress in improving the quality of life for all Pakistani citizens, especially women. --More 02/06/2006 19:18
