Washington: The World Bank will increase its flood-related support to Pakistan to $ 1 billion from the previously announced $ 900 million.
World Bank Group President Robert B Zoellick informed Pakistan's Finance Minister Hafeez Shaikh about his decision and emphasised the Bank Group's commitment to help Pakistan recover from the worst floods in its history.
"As the surging Indus River devastates Pakistan, the country needs the world's support to meet urgent humanitarian needs: food, clean water, sanitation facilities, medical and nutritional supplies, and vaccines," Zoellick said after meeting Shaikh.
"At the same time, Pakistan's reconstruction and recovery also require long-term support. The World Bank is committed to help the people of Pakistan during this time of need and has made $ 1 billion available to finance immediate recovery needs and longer-term reconstruction," he said.
The money will come from the Bank's fund for the poorest countries, the International Development Association (IDA), which means that the loans are concessional and carry no interest payments.
This funding is already programmed money for Pakistan that is being diverted to meet immediate needs, the Bank said in a statement.
Zoellick and Shaikh also discussed the government's economic reform programme, institutional and governance arrangements, and the need to mobilize additional resources for flood reconstruction.
"We need to respond strongly to the crisis at hand, but we need to do it without losing sight of important economic reforms," said Zoellick.
"This disaster underscores Pakistan's fiscal vulnerability and dependence on foreign aid. Renewed commitment to governance and fiscal reforms will be important to mobilize domestic revenues and ensure that funds reach the poor people it is intended for.
The response of donors to the floods will also depend on the government's ability to deliver in this area," he said.
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