Washington-Pakistan will receive $ 500 million interest-free credit approved Thursday by World Bank before the end of March in an encouraging sign for the country's economic stabilization effort. The transfer will take place before March 31, bolstering Pakistan's foreign exchange reserves as well as enhancing international investor confidence in the drive to put the economy back on high growth track, officials told APP here Friday.
The targeted project - Poverty Reduction and Economic Support Operation - is designed to support the Pakistani government's policy measures that promote macroeconomic stability. It seeks to benefit the poor people and is also expected to strengthen Pakistan's competitiveness by spurring the financial sector.
Pakistan's ambassador to the United States Husain Haqqani had an extensive meeting with World Bank President Robert Zoellick in Washington last week. During the meeting, Haqqani drew the WB leader's attention to the importance of backing the government's endeavors for economic uplift of the people, a Pakistan embassy spokesman said.
The agreement, inked Thursday on $ 500 million credit by Economic Minister at the Pakistani embassy in Washington Abdul Wajid Rana, comes about three weeks ahead of an important Friends of Pakistan meeting in Japan.
Tokyo and the World Bank will co-host the April 17 meeting, which will be chaired by President Asif Ali Zardari and draw senior leaders from several Western industrialized countries, major Eastern economic powers and oil-rich Gulf nations.
Also, Pakistan and the World Bank on Friday signed two assignments and release agreements of second partnership for polio eradication projects converting the IDA credit of US $ 67.84 million provided by the bank into grant for polio eradication in the country.
The Assignments and Release agreement for partnership for Polio eradication project was signed by Farrakh Qayyum, Secretary Economic Affairs Division (EAD) on behalf of the government of Pakistan and Said AL-Habsy, Acting Country Director, Word Bank on behalf of the bank.