WB approves $300 mn Flood Response Package for Pak

The World Bank has approved a credit worth $300 million to assist Pakistan's efforts to respond to the loss of life and destruction wrought by the recent devastating floods.

This support, which is part of the Bank's $1 billion commitment for Pakistan's floods recovery and reconstruction in this fiscal year, is fast-disbursing financing of critical flood-related imports, the Bank said in a statement.

Recent flooding in Pakistan, the result of extraordinarily heavy monsoon rainfall, has affected all the regions in the country and over 20 million people.

Preliminary figures show that more than 1.8 million homes have been damaged or destroyed displacing over 8 million people.

Relief and recovery requirements are enormous and have severely strained infrastructure, services, and financial resources.

"The credit is part of the first phase of the World Bank’s strategy to assist with flood recovery in Pakistan," said Rachid Benmessaoud, World Bank Country Director for Pakistan.

"The recent floods are of a magnitude and scale that would stretch the capacity and resources of any country and have adversely impacted communities that were already vulnerable," he said.

This operation will disburse the full $300 million against imports of these items.

"This is only the first step on a long road to recovery," said Hanid Mukhtar, Co-Task Team Leader.

The credits from the International Development Association (IDA), the World Bank's concessionary arm, have 40 years to maturity with a 10-year grace period; they carry a service charge of 0.75 per cent.