World Bank approves $6.2 bln Pakistan lending plan

[Hyde]

World Bank approves $6.2 bln Pakistan lending plan​

Friday, 09 Jul, 2010

World Bank President Robert Zoellick. — AP Photo

WASHINGTON: The World Bank on Thursday approved a four-year $6.2 billion lending program for Pakistan that seeks to boost tax revenues, make energy supplies more reliable and improve conditions in conflict-hit areas.

While the lending strategy from 2010 to 2013 is slightly less than the $6.5 billion committed during the last four-year period, the program hones in on specific trouble spots in Pakistan.

Pakistan is battling al-Qaeda-linked militants, which has uprooted nearly three million people since 2009 and put an extra burden on the country's struggling economy.

The World Bank said it will intensify its efforts to help the government increase tax revenues, which has caused chronic underfunding of key services and made the country reliant on foreign aid.

Pakistan's tax-to-GDP ratio is one of the world's lowest.

“Raising the ratio of tax to GDP — currently only 10.2 per cent of GDP — is essential to mobilise resources to invest in human development and infrastructure, build resilience to future shocks, and guard against costly and disruptive growth reversals,” the Bank said in a statement.

Pakistan was due to implement a value-added tax (VAT) or a reformed general sales tax of 15 per cent by July 1, but the 2010/2011 budget deferred the move to October 1 because of a failure to reach consensus among provinces. The Bank's plan envisages working with provinces to boost revenues.

Tapping hydropower potential

In the energy sector, the Bank said it will help Pakistan tap its huge hydropower potential to make power supplies more reliable and improve the distribution of natural gas system, which through leakage or inefficiencies has higher than average losses.

The country has long suffered from chronic power shortages that have angered the public and stifled industry. In April, the government announced measures to cut state electricity consumption by half.

The World Bank said it will also focus its lending on addressing problems in Pakistan's conflict-hit areas. These include Federally Administered Tribal Areas near the Afghan border, and Khyber-Pakhtunkhwa province, formerly known as North West Frontier.

In particular, the World Bank said funding will be aimed at health and education, and improving the livelihoods of people, particularly for young men, living in these areas.

“This strategy recognises that to steer Pakistan back on a path of broad-based growth, create jobs, and reduce poverty, a prolonged period of macroeconomic stability, financial discipline and sound policies is required,” said Rachid Benmessaoud, World Bank country director for Pakistan.

 

[owcc]

Hope that the money is put into good use for the development of your country and her people.Good luck

 

[rohailmalhi]

Oh God another Loan .

 

[S_O_C_O_M]

More F-16s and now we can buy Chinese Missile Defense System.

 

[Tayyab1796]

GOD ALMIGHTY !! ... this means more plunder and corruption by rulers ... very few if any of this money will flow to where it is needed , We will end up with whopping foreign debt , our rupee will decline which will encourage more and more inflation i-e more and more misery for common man ... thew only ones gaining will be the rulers.

 

[owcc]

GOD ALMIGHTY !! ... this means more plunder and corruption by rulers ... very few if any of this money will flow to where it is needed , We will end up with whopping foreign debt , our rupee will decline which will encourage more and more inflation i-e more and more misery for common man ... thew only ones gaining will be the rulers.

If that be the case you must ask world organizations to carry ou projects worth equivalent amounts .That way they can check the usage of money.

 

[lyns]

this is crazy. They ur f up pakistan hard in every way. The big idea is to make pakistan slave and never let is stand up in on its feets. Jag pakistan awam jag. Get down streets this is crazy

 

[Old School]

It means more inflation in waiting.

 

[AgNoStiC MuSliM]

Oh God another Loan .

When Pakistanis don't pay taxes how else do you expect the government to fund development programs?

 

[DesiGuy]

When Pakistanis don't pay taxes how else do you expect the government to fund development programs?

than force them to pay.

 

[Kyusuibu Honbu]

More F-16s and now we can buy Chinese Missile Defense System.

Are you being sarcastic or just incredibly naive?

Just for the record,these are loans & like always they"ll come with restrictions,any misuse then you"ll face a **** storm of consequences.

 

[iPhone]

than force them to pay.

they will and have forced the poor and the middle class to pay, problem lies in upper middle class, the rich and the elite. They dont pay taxes or pay very little taxes if at all.
And I share the same feeling as the guy who posted, "oh god, another loan."

 

[jha]

Ask Nawaj Sharif to pay a little more than Rs.2500....how does 25,00,00,000 sound...I am sure if calculated correctly this will be the amount he has to pay...

 

[Indiarox]

More F-16s and now we can buy Chinese Missile Defense System.

You do that with this money and you can kiss all further loans Goodbye.
Seriously man Your Economy meeds that money more than your military.
Stable Economy= Money earned not borrowed= more cash to buy toys for your military

 

[ice_man]

after reading this news i can't wait to go to BR and read "TSP takes out its begging bowl to finance purchase of more weapons aimed against india" these **** TALIBUNNIES will arm themselves to the teeth "


on a serious note!!! now zardari will succed in his line "PAKISTAN KHAPPAY" he will finish pakistan (abb wakayi pakistan ko khapa degaa yeh)!!! before he finishes his 5 year term!!! this bloody joker from batman!!