The World Bank has approved $340 million for four development projects in social and infrastructure sectors, to help boost Pakistan''s economy. The bank would finance these projects from its two wings-International Bank for Reconstruction and Development (IBRD) and concessionary lending arm International Development Association (IDA).
These projects, which were approved by the World Bank''s Board of Executive Directors late Thursday are; NWFP First Development Policy Credit ($90 million), Punjab Education Development Policy Credit ($100 million), Punjab-Irrigation Sector Development Policy Loan ($100 million) and the Punjab Municipal Services Improvement Loan ($50 million). The NWFP First Development Policy Credit would support the implementation of the provincial government''s medium-term reform programme which is based on four pillars: reforms to accelerate human development and improve basic social service delivery; promoting growth and private sector development; fiscal reforms; and governance reforms in public financial management, procurement, civil service, and administrative devolution.
The Punjab Education Development Policy Credit would help the provincial government to implement wide-ranging reforms in the education sector. The credit is the last in a series of three development policy credits supporting the Punjab government''s three-year Education Sector Reforms Programme (PESRP), designed to enhance access, improve quality of education and gender parity. Since the launch of the reform programme, more than one million more children have been enrolled in Punjab schools.
For these two projects, the amount would be provided by the International Development Association (IDA) carries 0.75 percent service fee, 10-year grace period and a maturity period of 35 years.
Other two projects Punjab Irrigation Sector Development Policy Loan and Punjab Municipal Services Improvement Project, financed by the International Bank for Reconstruction and Development (IBRD), are fixed spread loans, payable in 20 years, including 8 years grace period.
For the Punjab-Irrigation Sector Development Policy Loan, the bank would provide financing to a major provincial reform agenda to improve fiscal management and service delivery.