Aid pledges a signal of regard for Tarin: WB

TOKYO (Agencies) - The World Bank while praising Pakistan government and Finance Advisor Shaukat Tarin, has said the scale of the donor pledges made on April 17 is a signal of regard for the tough measures the economic team, led by Shaukat Tarin, has taken in the past few months. We now need to focus on a range of critical development issues including health, education, skills building and social mobilisation as well as important infrastructure to underpin future growth. In a world crowded with problems, Pakistan has won an important commitment to this big agenda.The international community rallied to support Pakistans economic program with more than US$5 billion in funding designed to meet its immediate needs and protect expenditures on safety net and human development initiatives critical for poor people. The amount exceeded initial expectations. The conference was co-hosted by the Japan government and the World Bank and attended by representatives of 31 countries and 18 international organizations and agencies. Pakistans economy started showing strong signs of overheating more than two years ago and with additional food and fuel price shocks hit last year, policy responses were inadequate. The new government took robust stabilising measures and entered into an International Monetary Fund Stand-By Arrangement in November last year which remains on track. Through this difficult adjustment - made all the harder by a global downturn - Pakistan has done well to protect the poorest 25 per cent of its citizens, said Isabel Guerrero, World Bank Vice President for South Asia. Social spending in areas like education and health has been shielded and what we have achieved in Tokyo is to raise that shield for the poor even higher with an additional US$5 billion. In essence, under all the macroeconomic numbers, this meeting has been about protecting the poor. Participants at the conference recognised the multiple challenges confronting Pakistan on both economic and political fronts. While delegations noted the need for Pakistan to ensure economic stabilisation, they also emphasised their commitment at this time was both an expression of support to the people of Pakistan and a recognition of the critical importance of stability and development in this region. The government of Pakistan shared development plans at the conference and committed to tough measures that would sustain macroeconomic stability while rolling out expanded social safety nets and laying the foundation for accelerated growth. Development partners supported new social safety net programs being introduced by the government. The World Bank is working with Pakistan to refine the targeting of these programs to make sure support reaches the poorest citizens in a transparent manner. The successful monitoring and evaluation of this program was of particular concern to donors.

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