World Bank approves 285-mn-dollar credit for Pak's 'militancy crises affected areas'

Written by: Ani
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Washington, Jan 22(ANI): The World Bank has approved a 250-million-dollar credit and a 35-million-dollar grant for Pakistan to assist the "poor and vulnerable households to cope with the income shock due to militancy crises' in Khyber Pakhtunkhwa and the Federally Administered Tribal Areas (FATA).

The grant, co-financed by the Multi-Donor Trust Fund (MDTF), will assist the households to re-establish themselves and prepare for the post-crisis long term rehabilitation program through covering basic consumption and any other short term basic needs.

"KP and FATA face a huge challenge of rehabilitation of the households affected by the ongoing crisis," a WB press release quoted Rachid Benmessaoud, World Bank Country Director for Pakistan, as saying.

"The credit and grant is part of the World Bank and our development partners' strategy to maximize benefits to the poor and vulnerable households affected by these adversities to accelerate the recovery and in the medium term help in promoting the human development," Benmessaoud added.

The credit will be from the World Bank's concessionary arm- the International Development Association, and will have "35 years to maturity with a 10-year grace period", carrying a service charge of 0.75 percent.

"The mechanism of cash grants will also be used to promote human development by investing in the education of beneficiaries' children," said Cem Mete, the task team leader.

"The cash grants will provide incentives to eligible households to comply with co- responsibilities such as sending their children to primary school to ensure the continuity of cash assistance. The project will also strengthen the necessary capacities and systems for post-disaster safety nets," Mete added.

The MDTF has been established by the World Bank and its development partners to provide support for humanitarian, transition, reconstruction and development programs in KP, FATA and the militancy crisis affected areas of Balochistan. (ANI)

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