World Bank’s assistance
From the Newspaper | Editorial |



THE World Bank’s decision to provide $5.5bn in development assistance to Pakistan over the next three years to fiscal 2014 should somewhat ease the financial troubles of the cash-strapped government and give it some respite in the wake of drying foreign official and private capital inflows. The Bank’s assistance is meant to shore up the country’s sliding economy, as well as to create jobs and health facilities, and construct roads in poorer and less-integrated regions and tribal areas near the Afghan border, under a multi-donor trust fund supported by 10 nations. The project for the crisis-hit areas in Balochistan and Khyber Pakhtunkhwa is aimed at reducing the influence of Al Qaeda and other terrorist groups over the population living there. The initiative unveiled through the Bank’s Country Partnership Strategy Progress Report shows that the international community recognises the implications of poverty and backwardness for peace in the region, and is ready to help.

But there is no such thing as a free lunch. The government will be required to contribute to the effort to get the country back onto the path of high, sustained economic growth as articulated by it in its new growth strategy to continue to receive assistance.

The Bank says Islamabad will be expected to improve economic governance, take steps for human development and social protection, build social and economic infrastructure, and work to reduce security and conflict risk. The World Bank’s renewed commitment to support Pakistan in the wake of the country’s persisting economic troubles has afforded it with yet another opportunity to show to the world that it is serious about tackling its problems. The government must take effective steps to improve macroeconomic governance and implement the long overdue structural, administrative, fiscal and tax reforms to create space for future development spending. It has already delayed implementation of the reforms for a very long time at the expense of the people and the economy. Further dilly-dallying on the issue of reforms can have serious repercussions for the people who are suffering because of the incompetent handling of the economy.

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