Friday, June 2 2006 11:16 Hrs (IST) - World Time -

Washington: The World Bank has come up with a flexible three-year US$ 6.5 billion lending programme for Pakistan beginning 2006 with a view to helping the country achieve its development goals.

The programme, which was discussed at the bank's board of Executive Directors here yesterday, was a substantial jump of from the current fiscal lending of only USD 1.5 billion.

It will be administered by the bank and the International Finance Corporation and one of the priorities of the new package will be the emphasis on addressing the impact of the October 2005 earthquake.

The bank said that up to US$ one billion will be used to support reconstruction and recovery. Of this US$ 840 million has already been approved.

The bank said that its strategy is aligned to Pakistan's Poverty Reduction Strategy (PRSP) and designed around three major pillars: sustained growth and improved competitiveness; strengthened governance and service delivery; and improved lives and protection of the vulnerable.

"This strategy is designed to help Pakistan prosper," said John Wall, World Bank Country Director for Pakistan.

"The country has moved from crisis to growth, laying the groundwork for sustained economic growth and significant poverty reduction. We will substantially ramp up support to Pakistan and focus on the areas that are most critical for the country's poor and most vulnerable," he said in a statement.