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World Bank approves $1.69bn financing for Pakistan’s flood rehabilitation efforts

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  • WB says Sindh was the worst-affected province by floods.
  • Two projects worth $500 million and another is worth $292 million. 
  • Two projects of $200 million also approved.

ISLAMABAD: The World Bank’s Board of Executive Directors on Tuesday approved $1.692 billion in financing for five projects in the flood-hit province of Sindh, announced the global lender in a statement.

Out of the five, three projects support rehabilitation and housing reconstruction and the restoration of crop production for vulnerable communities. Out of the three, two projects are worth $500 million and another is worth $292 million. 

While the other two projects support health services for mothers and children. Both projects are worth $200 million.

“Sindh was the province worst affected by the 2022 floods. There were huge damages to the housing, health, and agriculture sectors and people lost their livelihoods. Beyond the rehabilitation and reconstruction of damaged houses and infrastructure, our engagement in the flood response effort is an opportunity to strengthen resilience, and reform institutions and governance structures”, said World Bank Country Director for Pakistan Najy Benhassine.

The $500 million “Sindh Flood Emergency Rehabilitation Project” will focus on providing short-term livelihood opportunities and strengthen the provincial government’s capacity to respond to disasters.

“The project will help restore and improve critical irrigation and flood protection infrastructure, water supply schemes, roads, and related infrastructure,” said the global lender in the statement. It has forecast that close to 2 million people, out of which 50% are women, will benefit from the restoration and resilient reconstruction of critical infrastructure.

A community-level cash-for-work program will provide short-term income support to approximately 100,000 households.

On the other hand, the $500 million “Sindh Floods Emergency Housing Reconstruction Project” will support owner-driven and multi-hazard resilient reconstruction of core housing units.

Meanwhile, the $292 million approved for the “Sindh Water and Agriculture Transformation Project” will increase agricultural water productivity, improve integrated water resources management, and restore crop production by flood-affected farmers.

“More than 885,000 households (approximately 4.4 million people) are expected to benefit from the project. As an immediate response to the floods, the project will provide cash transfers to 800,000 flood-affected farming households to help restore crop production through the purchase of seeds, fertilizer, and other critical inputs,” the WB said.

The lender has also approved $200 million for the “Sindh Strengthening Social Protection Delivery System Project” that will strengthen the provincial social protection delivery system and enhance access to and utilization of mother and child health services.

Another $200 million was also approved for the “Sindh Integrated Health and Population Project” to improve both the quality and utilisation of basic reproductive, maternal, newborn, child and adolescent health and nutrition services.

“It will also help in the rehabilitation and reconstruction of health infrastructure that was damaged in the floods, disrupting the delivery of these services. The project will improve access to quality healthcare services for, the population of the selected government dispensaries in remote and peri-urban areas especially women, girls, and children, and in the flood-affected settlements in Sindh,” said the lender.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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