Earthquake won't impact economic growth: World Bank

The October 8 earthquake will not significantly slow Pakistan's economic growth as donors will pay for much of the reconstruction, a senior World Bank official said on Saturday.
"Much of the impact of the damage would be sustained by the bilateral and multilateral donors over the period of the next few years," World Bank vice-president for South Asia Praful Patel told AFP.
"In all probability Pakistan will not have to divert its public sector funding for reconstruction. The damage to the economy will not be more than 0.3 to 0.4 percent, and it is not going to dent the growth rate much."
The State Bank has forecast 6.3 percent economic growth this fiscal year. A November 19 donors' conference in Islamabad would set the tone for reconstruction, Patel said.
"I am confident that the money needed for the reconstruction in the first year will be on the table during this donors' conference," he said. "I am sure that apart from multilateral commitments, bilateral commitments will also be honoured."
"I visited the area, and the nature of the tragedy and losses is very grave," Patel said, speaking at a World Bank meeting in Lahore.
He also suggested that relief efforts should be planned for the next 12 months, not just until the end of winter, which has just started.
"I think the government and aid agencies should review their relief strategy as the homeless people are going to need shelters for a year or so, and not (only until) the end of March as is being planned now."
Donors say Pakistan will need more than 3.5 billion dollars to rebuild quake-hit towns and villages in the North West Frontier Province and Azad Kashmir.
Pakistan will also need more than 90 million dollars to revive livelihoods lost in the earthquake and 1.6 billion dollars for relief efforts, they say.
Patel said that in order to achieve meaningful economic progress, Pakistan would have to sustain economic growth of seven percent for 10 to 15 years. "The bank is confident that Pakistan can get there if the major macro-economic indicators like inflation are managed," he said.