World Bank approves US$ 350Mln for Pakistan
By Azka Jamil 'Pakistan Times' Special Correspondent

ISLAMABAD: The World Bank approved US$ 350million credit to support the Government of Pakistan's medium-term reform programme, which aims at promoting sustained economic growth as its main vehicle for poverty reduction.

The Second Poverty Reduction Support Credit (PRSC II), which supports the government's Poverty Reduction Strategy Paper, will finance reforms designed to maintain macro-economic stability, improve management and effectiveness of public expenditures, and assist power sector reforms.

It will also support privatisation programme, improve the regulatory framework for competition, and enhance female labour force participation and labour market flexibility.

"Economic reforms are now contributing to increased investor interest from Pakistanis and foreign investors alike," said Yusupha Crookes, World Bank Country Director for Pakistan.

This credit, from the International Development Association (IDA), theWorld Bank's concessionary lending arm, carries a 0.75% annual service fee,while a portion of this credit (less than half) also carries an interestcharge of 4% per annum.

The entire credit has a 10-year grace period, and a maturity of 35 years.●