Pakistan, World Bank sign $500m loan agreements

ISLAMABAD: Pakistan and the World Bank signed $500 million worth of loan agreements for agriculture and climate mitigation projects in Punjab and Khyber Pakhtunkhwa provinces.

“The ministry of Economic Affairs signed two financing agreements, having total funding volume of $500 million, with the World Bank for ‘Punjab Resilient and Inclusive Agriculture Transformation Project’ worth $200 million and ‘Khyber Pakhtunkhwa Accessibility Project’ worth $300 million on November 1, 2022,” a government statement said.

Kazim Niaz, secretary, ministry of Economic Affairs and Najy Benhassine, country director, World Bank signed the agreements.

Punjab Resilient and Inclusive Agriculture Transformation Project is designed to enhance equitable access to, and productivity of, agricultural water and improving incomes of farmers’ particularly small and medium landholders.

“The project will contribute to transforming Punjab’s agriculture into a more inclusive, productive, sustainable, and market-oriented sector,” the statement said.

“The project will help the government of Punjab in addressing low water access equity and high on-farm water losses; low on-farm productivity, limited crop diversification toward high value crops and away from more water-intensive crops, and low adoption of climate smart production practices and limited market opportunities for small and medium farmers.”

The statement said Khyber Pakhtunkhwa Rural Accessibility Project was aimed to improve safe and climate-resilient rural accessibility to schools, health facilities and markets in Khyber Pakhtunkhwa.

“The project interventions will help the government of Khyber Pakhtunkhwa in upgrading and rehabilitation of provincial roads; improvement of climate resilience of infrastructure, including the raising of embankments, provision of side drains, bridges, improvement of culverts, ditches, vegetation; improvement of road safety infrastructure and equipment in the vicinity of schools, health facilities and marketplaces; provision of fiber optic infrastructure to facilitate the expansion of internet connectivity and; and safe and affordable school journeys for girls from marginalized communities.”

Last month the government had also signed three projects financing worth $690million with the World Bank for land management and developing housing sector in Punjab and national level interventions in health sector.

Niaz reiterated the commitment of the government to extend all possible support to the provincial governments in addressing their financial needs necessary to overcome the development challenges and to achieve economic growth in the country that is more inclusive and sustainable.