Pakistan: World Bank Supports Earthquake Recovery with US$470 million

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			> Audio Shantayanan Devarajan Chief Economist, South Asia Region, World Bank
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WASHINGTON, October 25, 2005 – The World Bank today announced a package totaling US$470 million to assist the Government of Pakistan in the reconstruction of areas devastated by the massive earthquake of October 8.

The package comprises US$200 million in quick disbursing credits from the Bank’s concessional International Development Association (IDA), a US$100 million loan for highway reconstruction, US$130 million in additional credit financing for community infrastructure and US$40 million, announced last week, in reallocated IDA funding.

“The scale of this disaster is really unimaginable and the problems that the survivors are facing in worsening weather conditions are frightening,” said World Bank President Paul Wolfowitz.  “We are most encouraged by the resoluteness of the Government’s response and very eager to do what we can to help.”

Wolfowitz said the amount of the package was a big step but sadly just a first step as everyone would have to do much more. “We felt that it was important to give the Government the confidence to address the immediate needs and as we develop a better idea of the medium-term needs we will work on that as well.”

The World Bank President said he had been extremely encouraged by the way in which the Government and people of Pakistan were approaching their very big development challenges when he visited the country in August.  “To have this catastrophe piled on top is an enormous extra burden but I’m confident Pakistan will meet this challenge and we are ready to do what we can to help.”

The Government of Pakistan welcomed the Bank’s response: “The speed and scale of this commitment is exactly what Pakistan needs right now,” said the country’s Prime Minister Shaukat Aziz. “We do welcome this from the international community because it is this sort of support that is going to make all the difference.”

The World Bank, the Asian Development Bank and a multi-donor team began work in Pakistan this week on a needs assessment that will help the government refine its initial estimates of damage and loss. The World Bank has also lent its support to an innovative web portal designed to share as much information as possible that can be gathered from the 4,000 villages in the affected areas (LINK).

Apart from budget support, the Bank’s financial support will target infrastructure large and small. The US$100 million loan will be channeled to the reconstruction and rehabilitation of the highway connecting Muzaffarabad, Kajan Valley and Northern Areas with the rest of the country.

The Pakistan Poverty Alleviation Fund, which the Bank has supported across Pakistan for several years, has 61 partner organizations. These local-level non-governmental organizations are already mobilized and delivering relief. As the operation moves into rehabilitation and reconstruction, US$100 million from the Bank will support the rebuilding of devastated communities.

Similarly, Bank-supported community infrastructure projects in Azad Jammu and Kashmir and North West Frontier Province will also receive funds to rebuild community works, as will irrigation works.