Pakistan: Achieving Results in a Challenging Environment

Overview

Throughout its history, Pakistan has been plagued by cycles of high growth interrupted by shocks and crises and followed by relative stagnation. Social indicators for both health and education have remained low and have lagged behind other countries in the region. The next few years are deemed critical in terms of gaining the fiscal and economic stability required for equitable growth and development.

Challenge

Pakistan has a population of over 162 million, with over 60 percent living in rural areas. The country continues to under-perform as compared to other countries at similar levels of per capita income in terms of economic growth and social development. Pakistan has faced significant political, economic, and constitutional challenges over the past four years. The devastating floods in mid-2010 further added to the economic woes of the country. The government’s strategy focuses on regaining macroeconomic stability and on structural reforms required to support the recovery of strong and sustainable growth.

Approach

TThe World Bank’s Country Partnership Strategy (CPS) is directly linked to Pakistan’s own development vision. The Bank’s support is focused on helping the country maintain economic stability; assisting the government to put in place a safety nets system; and supporting education reform programs. The Bank is also helping Pakistan cope with the consequences of conflict through its engagement in the country’s border areas. As of March 1, 2011, Pakistan’s portfolio consisted of 22 active projects with the total commitment (IDA and IBRD) of US$3.822 billion. The Pakistan trust funds portfolio has 55 active grants with a total commitment of US$110.405 million.

Results

• Investing in Education: The overall net primary school enrollment in Punjab increased from 45 percent in 2001 to 62 percent in 2008. Female primary enrollment went up from 43 percent to 60 percent. Similar enrollment results have been achieved in Sindh.
• Responding to natural disasters: The Bank provided support for flood recovery consisting of US$300 million in critical import financing, US$20 million for highways rehabilitation, and US$125 million to finance cash transfers to about 1.4 million flood-affected families. The Bank also provided US$400 million for earthquake reconstruction and so far, ninety-six percent of the 350,000 houses have been completed.
• Protecting the poorest: The Bank’s support to the Benazir Income Support Program (BISP) focuses on increasing its targeting efficiency and strengthening its operation. In 2011, the program is expected to cover about 7 million households or about one quarter of Pakistan’s total population.
• Operating in conflict areas: The Bank is now administering the Multi-Donor Trust Fund (MDTF) for Khyber Pakhtunkhwa (KP), the Federally Administered Tribal Areas (FATA) and Balochistan, which supports reconstruction and development in conflict areas. In 2011, the Bank provided financing—supplemented by a MDTF grant—to finance cash transfers to conflict-affected households in the KP and FATA.
• Supporting rural livelihoods: The Pakistan Poverty Alleviation Fund (PPAF) has provided 1.9 million microcredit loans, 16,000 community infrastructure schemes, and training support in enterprise development skills for 232,000 people. The World Bank is also assisting the Government of Azad Jammu and Kashmir (AJK)* to restore vital economic and social infrastructure damaged by the 2005 earthquake. Approximately 190 subprojects, including 24 rural roads and 166 buildings, are complete.
• Connecting the Poorest: Major achievements of the ongoing highways project include: (a) road network in poor condition reduced from 49 percent to 39.5 percent and (b) network-level ride quality (measurement of how bumpy or smooth the road is) improved by 15 percent.

Voices

Only my brother could go to school before this school started but now I am going too because it is totally free. We learn new things every day. The teachers are very kind and school is so much fun. 

— Reshma, Student

Partners

The World Bank works closely with a large number of donors in various activities. A good example is the Bank’s work with the UK Department for International Development (DFID), the European Union (EU), and the Canadian International Development Agency (CIDA) on the education sector reform programs in Punjab and Sindh. The MDTF for the border region aims to facilitate harmonization of donor programs with government’s priorities. Australia, Denmark, the EU, Finland, Germany, Italy, Sweden, Turkey, the UK, and the United States have agreed to pool a total of US$140 million through the fund to support these reconstruction activities.

Toward the Future

The Bank is deepening its engagement on social protection, community-led development, water management, agriculture, energy, and infrastructure, while maintaining strong programs in education, and irrigation. Recognizing the challenges and uncertainties facing Pakistan in the coming few years, the Bank’s strategy emphasizes a more focused prioritization on key outcomes with flexibility to enable the Bank Group to meet emerging challenges and opportunities.