World Bank approves $300 mn Flood Response Package for Pak

The World Bank has approved a credit worth $300 million to assist Pakistan.

Last Updated: Oct 01, 2010, 13:22 PM IST

Washington: The World Bank has approved a
credit worth USD 300 million to assist Pakistan`s efforts to
respond to the loss of life and destruction wrought by the
recent devastating floods.

This support, which is part of the Bank`s USD 1
billion commitment for Pakistan`s floods recovery and
reconstruction in this fiscal year, is fast-disbursing
financing of critical flood-related imports, the Bank said in
a statement.

Recent flooding in Pakistan, the result of
extraordinarily heavy monsoon rainfall, has affected all the
regions in the country and over 20 million people.

Preliminary figures show that more than 1.8 million
homes have been damaged or destroyed displacing over 8 million
people.

Relief and recovery requirements are enormous and have
severely strained infrastructure, services, and financial
resources.

"The credit is part of the first phase of the World
Bank’s strategy to assist with flood recovery in Pakistan,"
said Rachid Benmessaoud, World Bank Country Director for
Pakistan.

"The recent floods are of a magnitude and scale that
would stretch the capacity and resources of any country and
have adversely impacted communities that were already
vulnerable," he said.

This operation will disburse the full USD 300 million
against imports of these items.

"This is only the first step on a long road to
recovery," said Hanid Mukhtar, Co-Task Team Leader.

The credits from the International Development
Association (IDA), the World Bank`s concessionary arm, have 40
years to maturity with a 10-year grace period; they carry a
service charge of 0.75 per cent.

PTI