The World Bank on Thursday reassured Pakistan that the Bank would help in using its offices to find solution to the issues regarding the Indus Waters Treaty (IWT) existing between the two neighbouring countries.
This reassurance came from the Word Bank during Bank’s Chief Executive Officer Kristalina Georgieva’s meetings with Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar. on IWT here on Thursday.
The WB delegation included Vice President Annette Dixon, Vice President for South Asia Region, Franz Richard Dress-Gross, Executive Director for Pakistan in WB Nasir Khosa and Country Director WB Pathumutho Illangovan.
Pakistani team was led by the Finance Minister and included Minister for Water and Power Khawaja Muhammad Asif, Attorney General of Pakistan and Secretaries of the Ministries of Finance, EAD, Statistics, Water and Power and Planning.
The minister for Water and Power conveyed that as per the government’s policy, Pakistan was desirous of good relations with all its neighbours, including India and wanted the resolution of IWT within its scope.
WB CEO said they understood the significance of the IWT and was cognizant of bank’s role being co-signatory to the treaty. She said the IWT would be a stepping stone to maintaining communications and good relations between the two countries.
Kristalina Georgieva said keeping in view the momentum in growth and economic progress in Pakistan, the WB will continue to assist with consideration of a bigger package including the IDA, IBRD, refugees and crisis modalities. She appreciated Tarbela extension project and said that WB would continue to look forward to working with the government on similar projects.
He suggested 50 per cent increase in IDA allocation for Pakistan as the current project profile in infrastructure, energy, social protection and regional connectivity projects was almost exhausted, from the IDA-17 pipeline.
The minister informed the delegation that the private sector had a major involvement in CPEC projects and out of $ 46 billion, over $ 30 billion was meant for private sector investment whereas the rest was for public sector financing in infrastructure including highways, energy sector and railways.
Later, during the meeting with WB delegation Prime Minister Nawaz Sharif hoped that the World Bank would play a lead role in resolution of disputes arisen between India and Pakistan regarding construction of hydro-electric plants through establishment of a court of arbitration.
The PM stated this while talking to Ms Kristalina Georgieva, Chief Executive Officer (IBRD/IDA), World Bank Group, who called on him here at the PM House. He discussed the resolution of disputes, specifically Kishenganga and Ratle Hydroelectric plants, and water reservoirs on the western rivers by India in violation of the Indus Water Treaty, 1960, to which the World Bank was a signatory.
The prime Minister welcomed the World Bank CEO on her first visit to Pakistan and congratulated her on appointment as Chief Executive Officer of the WBG.
Nawaz Sharif said that Pakistan highly placed its partnership with the World Bank since 1952 and appreciated its investment of $31.0 billion (from 1952 till date) in social, infrastructure, water and energy sectors. He also appreciated the disbursement of $ 2.5 billion since 2014 till date through a series of Development Policy Credits to Pakistan for carrying out structural reforms in growth and energy.
He reaffirmed the government’s commitment to take the reforms forward. The support of the WB in the energy sector projects, including Tarbela-IV, Tarbela-V and Dasu Hydropower projects, was also valuable to Pakistan, he added. He emphasized that the government was focused on development of hydropower projects (mega dams) all along the Indus cascade, and small and medium dams in Balochistan to meet energy demands.
In this regard, he said, Diamer-Basha Dam was a project of national importance as it would considerably change the energy mix, produce affordable electricity and store water. The PM expressed gratitude to the World Bank for the support for rehabilitation and reconstruction of the Temporarily Displaced Persons (TDPs) by providing $ 75 million and informed that the return process of the TDPs was on fast track.
