ISLAMABAD – The World Bank has approved a $285 million loan to assist recovery efforts in Khyber Pakhtunkhwa and the Federally Administered Tribal Areas (FATA).
According to a statement issued by the World Bank, the loan includes a grant of $35 million from the Multi-Donor Trust Fund (MDTF). This combined support comes at a critical juncture to assist the poor and vulnerable households to cope with income loss due to militancy crises in KP and FATA.
The $250 million credit will be from the International Development Association (IDA), the bank’s concessionary arm and will have 35 years to maturity with a 10-year grace period, it carries a service charge of 0.75 percent.
The Provincial Reconstruction, Rehabilitation, and Settlement Authority will implement the project, in partnership with the FATA Secretariat and other stakeholders.
The cash grants would assist the households to reestablish themselves and prepare for the post crisis long-term rehabilitation program through covering basic consumption and any other short term basic needs.
The KP and FATA Emergency Recovery Project is a fast disbursing financing to assist the target households in recovery and promotion of human development through safety net support grants. It will provide immediate relief to the affected population in the region and support the initiatives undertaken by the federal and provincial governments and FATA in response to the militancy crisis.
World Bank Country Director Rachid Benmessaoud said Khyber Pakhtunkhwa and FATA face a huge challenge of rehabilitation of the households affected by the ongoing crisis. The credit and grant is part of the World Bank and our development partners’ strategy to maximise benefits to the poor and vulnerable households affected by these adversities to accelerate the recovery and in the medium term help in promoting the human development.
