UK releases 10 million pounds for PRSF

05 Oct, 2006

The visiting UK foreign assistance delegation has announced release of 10 million pounds as second tranche for Pakistan's Poverty Reduction Support Programme. The announcement came during the meeting the British delegation, led by Under-secretary Gareth Thomas and including UK Treasury chief secretary Stephen Timms, held with minister of state for economic affairs Hina Khar here on Wednesday.
The team also called on Prime Minister Shaukat Aziz. The delegation discussed at some length the progress over DFID's budgetary support of 80 million pounds aimed at reducing poverty in Pakistan. MoU of this grant support was signed between the two countries in March 2006. This support is stretched over a period of three years. First tranche of pound 20.00 million was released in March, 2006.
The delegation was informed of the increase in the amount and effectiveness of funds the government is spending for poverty reduction to implement its Poverty Reduction Support Programme to achieve the targets set out in MDGs. Based on satisfactory performance of the government of Pakistan the UK side announced immediate release of the supplementary tranche of Pound 10.00 million.
During the meeting the visiting delegation also held discussion on a long term Development Partnership Arrangement (DPA), that is under consideration of the Government of Pakistan and the Government of UK. It spreads over a period of ten years with a view to provide Pakistan with predictability and increase the effectiveness of DFID aid and assistance.
The letter of intent of DPA was signed by the Prime Minister Tony Blair and Shaukat Aziz in March, 2006. After a consultative process the DPA is now being finalised for signing.
The DPA will set out the shared and individual commitments in the development partnership made by the two governments. It will provide a transparent framework for mutual accountability for implementation of the development partnership. Talking to the UK delegation Prime Minister Shaukat Aziz said Pakistan and UK have a special relationship which is multifaceted covering political, diplomatic, economic, defence, security, social and cultural fields.
He said Pakistan attaches great value to its relationship with DFID as it has been a strategic partner in Pakistan's development over the years. He particularly appreciated the contribution made by DFID in the rehabilitation and reconstruction of earthquake affected areas.
The Prime Minister said that people of Pakistan have faced the devastating earthquake of October 8 with unmatched unity and resilience. With the help of the spirit of volunteerism shown by the people and the support of international community, Pakistan is determined to convert this adversity into opportunity and is taking all steps required for the early reconstruction and rebuilding of the earthquake affected areas.
He said that close to 90 percent people who were in tents are now living in permanent or semi-permanent shelter. All facilities of education and healthcare are functioning in their premises or in temporary prefabricated buildings, the Prime Minister said.
He said plans are being finalised to shift the town of Balakot to a nearby site, Bakrial, as Balakot lies in the red zone, which is seismically unsafe. Shaukat said Pakistan is pleased and satisfied with the response of international community to the tragedy which had fallen on Pakistan on October 8, 2005. The world stood by Pakistan, which is a sign of their confidence in our credibility and transparent procedures adopted by the government, he added.
The visiting delegation appreciated the reconstruction and rehabilitation efforts of the government for the earthquake affected areas and expressed their satisfaction on the progress made in this regard. They also appreciated Pakistan's role in bringing together the donors and recipient nation working under the United Nations.
Gareth Thomas said that DFID will immediately release another 9 million pounds to support Erra to expand its work and help people get through winter while another 35 million pounds will be released in the next two years to be spent on housing, health, infrastructure and other sectors. The meeting was also attended among others by the Minister of State for Economic Affairs Division. Hina Rabbani Khar and British High Commissioner Mark Lyall Grant.

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