PK PRSC I - Supplemental Financing

The reform program supported by the PRSC is aligned with the GoP's PRSP and is grounded on four pillars: (i) achieving sustained high and broad-based economic growth, focusing particularly on the rural economy while maintaining macroeconomic stability; (ii) improving governance and consolidating devolution, both as a means of delivering better development results and ensuring social and economic justice; (iii) investing in human capital, with renewed emphasis on effective delivery of basic social services and (iv) targeting the poor and vulnerable to bring the marginalized sections of the population into the mainstream of development. The achievement of the objectives and outcomes of the PRSC I were rated satisfacctory. Macroeconomic and growth performance have been strong and reforms in a number of areas such as privatization, tax administration reforms, telecommunications deregulation progressed well. In other areeas, notably power sector and in civil service reforms, progress had been much slower and these are among the focal areas of dialogue under the PRSC II program. On October 8, 2005 a powerful earthquake hit northern Pakistan where the brunt was suffered on the western discricts of the NWFP and most of AJK with enormous loss to life and devastation to infrastructure and property. At the request of the GoP, the Bank responded quickly by preparing a package of Supplemental Financing of US$150 (SDR 106.3 million) under the PRSC I program.