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WB approves $451m for social sector development

* Money to be used in education, health and irrigation

Staff Report

ISLAMABAD: The World Bank on Friday approved a package of assistance worth $451 million for Pakistan’s social sector development. The Government of Pakistan will use the money to improve education in Punjab and Sindh, enhance irrigation in Punjab, implement reforms in education and health in North-West Frontier Province (NWFP), and eradicate polio throughout the country.

Only half of Pakistan’s adult population is literate and over 40 percent of 5-9 year olds are not in school, and poor health outcomes and high fertility will remain an obstacle to economic growth and poverty alleviation. Through improved schools, health facilities, and water provision, these projects will help the country make progress towards reaching the Millennium Development Goals. The assistance includes $130 million for the Second NWFP Development Policy Credit (DPC) that is designed to broaden and deepen human development reforms in key sectors such as education and health. It will also build upon the momentum of reforms in fiscal management, governance, and growth. The Province scores below the national average on education and health indicators, and this operation will focus on expanding coverage and quality of education, health and social protection services, which are critical for sustained and inclusive economic growth.

The Fourth Punjab Education Development Policy Credit that supports the on-going Punjab Education Sector Reform Program (PESRP) will get $100 million. This operation will support the Province medium-term reform program to improve performance, and quality of school education; improve school participation and retention rates; and reduce gender and regional disparities.

Punjab has shown improvements in education with public school enrollments increasing by over 2.4 million over the past three years. However, about 40 percent of Punjab primary school-aged children are still out of school.

The $100 million for the Second Punjab Irrigation Sector Development Policy Loan will support reforms designed to improve management and maintenance of the irrigation system to ensure its long-term physical and financial sustainability. Irrigation is a critical factor for Pakistan economy. About 80 percent of the arable land and 90 percent of agricultural output are entirely dependent on irrigation, making this a critical sector for rural development and poverty alleviation.

The Sindh Education Sector Development Policy Credit of $100 million is the first of a series of three operations designed to support the Government of Sindh Medium-Term Education Sector Reform Program. The program aims to increase participation of children, prevent dropouts and improve transition rates, reduce gender and regional disparities, and improve quality in elementary and secondary education. There are $21.14 million for the Additional Financing Credit for the Second Partnership for Polio Eradication that will help supply Oral Polio Vaccine for the country's Supplementary Immunization Activities during second half of 2007. The project supports the WHO-led Global Polio Eradication Initiative, and builds on the original credit, approved in May 2003. Pakistan has made good progress towards Polio eradication through sustained and intensified efforts and the numbers of confirmed polio cases decreased from 324 in 1999 to 28 in 2005. However, the number of Polio cases increased to 40 in 2006andrequires intensification of eradication efforts, including a coordinated response to misperceptions about polio immunization in parts of the country. Most of these credits are from the International Development Association (IDA), except for the Second Punjab Irrigation Sector Development Policy Loan, which has been obtained from the International Bank for Reconstruction and Development (IBRD).

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