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Reconstruction of flood-hit areas: World Bank, ADB still claim they’ve to provide $3 billion

ISLAMABAD: The Asian Development Bank and the World Bank are still claiming on their websites that they will provide funds amounting to $3 billion for reconstruction of flood-hit areas de-spite the fact that Pakistan has formally rejected their loan offers that are not additional to what was already committed under the three-year country strategy programme.

Minister of State for Finance Hina Rabbani Khar announced in a press conference on Thursday that Pakistan had rejected offers of the ADB and the World Bank to extend loans by diverting funds al-ready committed for ongoing projects. She said the government would accept fresh loans only for reconstruction of flood-hit areas.

"Over the next two years the ADB's contribution to the recovery is expected to be at least $2 billion," the bank says on its website. The World Bank's website claims that it has committed $1 billion in support to Pakistan's recovery. The ADB and the World Bank led the assessment of the flood impact at the request of the govern-ment of Pakistan, in close co-ordination with the federal and pro-vincial governments, the United Nations, and other development partners.

As an initial contribution, the ADB approved a $3 million grant from the Asia Pacific Disaster Response Fund for urgent relief and rehabilitation needs. The ADB will also establish a trust fund to provide a vehicle for other development partners to channel their contributions for reconstruction support but it is not clear if there has been any development in this regard.