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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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Pakistan’s gold prices continue to decline.

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The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

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Price of LPG “slashed” by Rs. 20 per kilogram

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Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

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ADB delegation stops by FBR headquarters

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Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.

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