Pakistan, Bangladesh top borrowers of International Development Association (IDA) funding
In the fiscal year 2023, Pakistan and Bangladesh emerged as
the top borrowers from the International Development Association (IDA) of the
World Bank, according to the bank's annual report. Pakistan secured the highest
loan amount of $2.305 billion, followed by Bangladesh with $2.3 billion and
Tanzania with $2.135 billion.
These findings were disclosed in the 'World Bank Annual
Report 2023: A New Era in Development,' published on September 28, 2023,
covering the period from July 1, 2022, to June 30, 2023. The IDA is a part of
the World Bank and operates out of the United States.
Pakistan,
World Bank discuss disbursement of $2 b during current financial year
The significant portion of the funds provided to Pakistan
was in response to the devastating floods that occurred in 2022, particularly
affecting the Sindh region. The report stated, "The Bank helped Pakistan
respond to devastating floods with nearly $1.7 billion for five projects in the
worst-affected Sindh province to build resilient housing, restore crop
production, provide health services for mothers and children, and strengthen
social protection and the local government’s disaster response capacity."
The report further mentioned that a total of $10.1 billion
had been allocated to lend to the South Asian region during the fiscal year
2023, with a focus on sectors such as public administration, energy,
extractives, agriculture, fishing, and forestry, which received more than half
of the allocated funds.
World
Bank warns of increasing exposure of Pakistan’s banking sector to sovereign
borrowing
Providing examples of specific projects, the World Bank
report highlighted, "In Pakistan’s Punjab province — which accounts for 73
per cent of the country’s total food production — a $200 million project is
promoting climate-smart technologies and practices to improve water-use
efficiency, build resilience to extreme weather, and increase small-scale
farmers’ incomes."
Source: Indian Express