World Bank approves $450 million fund to support the poorest in Pakistan

The World Bank on Wednesday approved a financial package worth $450 million aimed at helping the poorest and vulnerable segments in Pakistan, according to a press release. The program includes various measures to improve living conditions of the poor in the country, including expanding banking and financial services and widening the social safety net to cover marginalised communities. It will also help in promoting tourism in Punjab by encouraging private-sector development to increase opportunities.

The program comprises three different funds for achieving the three goals.

The Finance for Growth Development Policy (FGDP) will provide $300 million to support the government’s steps to ensure a transparent financial sector. “The FGDP aims to raise financial access throughout Pakistan to 50 percent of adults, including 25 percent women by 2020. Similarly, in the next three years, it aims to boost private sector credit access to small and medium enterprises to 15 percent from 7 percent in 2015.”

The National Social Protection Program for Results will release US$100 million to help the government improve and widen the social safety net to include vulnerable communities. It will also assist in updating Benazir Income Support Program’s National Socio Economic Registry—the national platform to objectively identify the poor for cash transfers and other social programs.

To promote tourism and economic activity in Punjab, Punjab Tourism for Growth Project will release $50 million to encourage private sector participation in tourism services and infrastructure. The fund will allow private sector to significantly help improve service quality, and create jobs by employing locals and more women.

According to the press release, the credit is financed from the International Development Association (IDA), the World Bank Group’s grant and low-interest arm.