[Pakistan] UK announces Rs 8.4 bn for Poverty Reduction Budget Support

from Pakistan Tribune

he agreement details the provision of up to Rps 8.4 billion (£80 million) in Poverty Reduction Budget Support (PRBS) and a further Rps 524 million (£5 million) in associated Technical Assistance, up to 2008.

The Government of Pakistan, will use the money for the priorities outlined in the country’s poverty reduction strategy, including on health and education. The Technical Assistance will be managed jointly with the World Bank and the Government of Pakistan.Speaking on the announcement of the money, Dr. Shafik said:

"I’m pleased to be able to announce this funding today. This package represents a step change in our development relationship with Pakistan and is a measure of our shared ambition with the Government of Pakistan to eradicate poverty.

There has been progress. Pakistan’s budget allocations are due to increase in line with the Pakistan Poverty Reduction Strategy Paper (PRSP) - Approximately RPS 309 billion (£3 billion) more for poverty related spending in financial year 07/08 than in financial year 01/02. Pakistan has achieved macroeconomic stability, completed an IMF programme, and mobilised growth of around 8%.

But Pakistan has also been spending on development. Projects such as its seven federal health programmes, including the Lady Health Worker Programme, it has provided electricity to 16,000 villages and established water supply to 1,216 villages. About 10% more 5 to 9 year olds now go to school as compared to 2001. These are all a welcome start. But as we jointly acknowledge, much more needs to be done if all the benefits of macroeconomic stability are to reach down to the poor.

Pakistan is currently revising its Poverty Reduction Strategy. It is our hope that this Poverty Reduction Budget Support will contribute to Pakistan’s ability to implement its revised strategy and in so doing, help eradicate poverty and improve the lives of millions", he said