World Bank Approves $300 Million Loan For Sindh

World Bank has approved a $300 million loan for the execution of a developmental project in southern Pakistan.

The loan has been committed for two projects aiming at “resilience to natural disasters and health emergencies”.

World Bank Country Director for Pakistan, Najy Benhassine, said that it is a pressing agenda in Pakistan to cope up with natural disasters like floods, draughts and public health emergencies.

“Building resilience to natural disasters and health emergencies is an important and urgent agenda in Pakistan that will help save lives and protect the economy”.

Benhassine showed his concerns towards the serious and crippling impacts of recent floods in Karachi due to extreme rainfall and droughts in Sindh along with economic downturn due to novel coronavirus pandemic.

According to the World Bank, these reforms are critical to build fiscal resilience and stimulate recovery from impacts of the pandemic.

Pakistan has been an economically struggling state and as per World Bank’s report, Pakistan’s real GDP growth is estimated to have declined from 1.9 percent to -1.5 this year.

In the preceding years also, Pakistan has received loans from World Bank for development projects.

Karachi Neighborhood Improvement Project (KNIP) was initiated by the World Bank in March 2018 as part of the “Pakistan Vision 2025”.

World Bank granted $86 million loan for KNIP to devise plans to transform the city which includes maintenance of roads and parks, restoration of old buildings, and traffic management system.

According to Director KNIP, Khair Mohammad Kalwar, the project aimed at enhancing public spaces, improving road infrastructure and administrative services.

Under this program, roads were to be constructed in Saddar and Malir areas, a drainage system was to be rehabilitated, bridges for pedestrians were to be built, road lines and separate roads for bicycles were to be constructed.

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Under the Karachi Neighborhood Program, a road was to be constructed from Coast Guard Chowrangi to Ibrahim Haideri. According to the plan, it was to be a 3-kilometer dual and single carriageway section from Malir to Korangi.

Sidewalks were to be built on both sides of the road and to have pedestrian street crossings, lighting, bus shelters, and safety barriers.

However, the project is facing delays and is far from completion even though the deadline was 10 months.

The latest $300 million loan from the World Bank needs to be monitored and utilized systematically to achieve the desired targets.