Pak. upbeat over World Bank move

By B. Muralidhar Reddy

ISLAMABAD MAY 3. The military Government in Pakistan is in an upbeat mood following the commitment by the World Bank to resume lending to the pre-1999 level.

This was evident from the press conference addressed here today by the Pakistan Finance Minister, Mr. Shaukat Aziz, on his return from Washington after attending the annual meetings of the IMF and World Bank and his audience with the World Bank President, Mr. Wolfensohn. He claimed that the bank would provide $ 700 million to Pakistan during the current calendar year while negotiation begins next week with the IMF for poverty reduction growth facility.

The World Bank decision to resume lending to the pre-1999 level - the programme was suspended following the Kargil conflict - indeed marks a major shift in the policy of the international financial institution.

The military government is thrilled over the change in the IMF policy and believes that it would take the country out of the financial crisis. The decision of the international institution has left political observers wondering as to what has prompted the policy change.

There have been a number of statements from the officials of the IMF and the World Bank in recent days lauding the economic reforms agenda of the military government. It is a fact that the Musharraf Government has gone out of its way to implement the IMF agenda and in the process antagonized several sections of society.

Mr. Aziz claimed at the news conference that a structural adjustment credit of $ 350 million was expected to be provided by the World Bank in June this year. This facility is provided to countries which design, undertake and implement reforms agenda.

The bank would also provide another $ 300 million more for banking sector adjustment beside $ 50 million for health and other facilities.

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Section  : International
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