World Bank, IMF agree to give $550m
WASHINGTON: The International Monetary Fund and the World Bank have agreed to jointly provide more aid to flood-hit Pakistan during the current fiscal year but both also insisted that the country needed to continue its economic reforms, officials said on Thursday.
“In response to this (flood), I will ask the IMF Board to approve $450 million in emergency assistance to be made available this month,” said IMF Managing Director Dominique Strauss-Kahn.
“The World Bank is committed to helping the people of Pakistan during this time of need and has made $1 billion available to finance immediate recovery needs and longer-term reconstruction,” said the bank’s President Robert B. Zoellick while adding another $100 million to $900 million already committed.
The additional $100 million, announced after Mr Zoellick’s meeting with Finance Minister Hafeez Sheikh on Wednesday, will be made available during the current fiscal year.
The money will come from the bank’s fund for the poorest countries, the International Development Association, which means that the loans are concessional and carry no interest payments. This funding is already programmed money for Pakistan that is being diverted to meet immediate needs.
