World Bank approves $450mn initiatives for Pakistan’s poorest people

The World Bank has “approved a package of measures worth $450 million to help the poorest and most vulnerable people in Pakistan”, a press release issued by the organisation said on Wednesday.

The National Social Protection Program for Results, which is worth $100mn, will assist the federal government to strengthen national social safety net initiatives ─ such as the Benazir Income Support Programme ─ to improve ‘beneficiary families’ access to complementary social and productive services”, the statement added.

“Pakistan has made significant progress in the implementation of economic reforms,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

“However, despite the substantial progress in the initial reform programmes and recent developments in the financial sector, there remains an important unfinished reforms agenda, such as financial access and inclusion remain particularly low,” Patchamuthu added.

“About 100 million adults in Pakistan don’t have access to formal and regulated financial services. This number represents about 5 per cent of the world’s unbanked population,” the organisation’s Pakistan director said.

“This needs to change for Pakistani women and men to realise their aspirations.”

One of the initiatives is Finance for Growth Development Policy (FGDP), which is a policy credit of $300mn to support efforts of the Pakistani government in promoting a more inclusive and transparent financial sector, the statement added.

The programme aims to raise financial access throughout Pakistan to 50pc of adults, including 25pc women by 2020.

Similarly, in the next three years, it aims to boost private sector credit access to small and medium enterprises to 15pc from 7pc in 2015.

Additionally, the organisation will help to strengthen the tourism industry in Punjab via its $50mn Punjab Tourism for Growth Project by building public-private sector partnership and allowing the provincial government to “foster stronger governance as well as give residents a more prominent say in local development plans”.

The credit is financed from the International Development Association, the World Bank Group’s grant and low-interest arm.

“Pakistan is among the 25 countries the World Bank Group and partners are prioritising as part of the efforts to reach Universal Financial Access by 2020.

Source: Dawn