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World Bank approves $1.69bn financing for Pakistan’s flood rehabilitation efforts

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  • WB says Sindh was the worst-affected province by floods.
  • Two projects worth $500 million and another is worth $292 million. 
  • Two projects of $200 million also approved.

ISLAMABAD: The World Bank’s Board of Executive Directors on Tuesday approved $1.692 billion in financing for five projects in the flood-hit province of Sindh, announced the global lender in a statement.

Out of the five, three projects support rehabilitation and housing reconstruction and the restoration of crop production for vulnerable communities. Out of the three, two projects are worth $500 million and another is worth $292 million. 

While the other two projects support health services for mothers and children. Both projects are worth $200 million.

“Sindh was the province worst affected by the 2022 floods. There were huge damages to the housing, health, and agriculture sectors and people lost their livelihoods. Beyond the rehabilitation and reconstruction of damaged houses and infrastructure, our engagement in the flood response effort is an opportunity to strengthen resilience, and reform institutions and governance structures”, said World Bank Country Director for Pakistan Najy Benhassine.

The $500 million “Sindh Flood Emergency Rehabilitation Project” will focus on providing short-term livelihood opportunities and strengthen the provincial government’s capacity to respond to disasters.

“The project will help restore and improve critical irrigation and flood protection infrastructure, water supply schemes, roads, and related infrastructure,” said the global lender in the statement. It has forecast that close to 2 million people, out of which 50% are women, will benefit from the restoration and resilient reconstruction of critical infrastructure.

A community-level cash-for-work program will provide short-term income support to approximately 100,000 households.

On the other hand, the $500 million “Sindh Floods Emergency Housing Reconstruction Project” will support owner-driven and multi-hazard resilient reconstruction of core housing units.

Meanwhile, the $292 million approved for the “Sindh Water and Agriculture Transformation Project” will increase agricultural water productivity, improve integrated water resources management, and restore crop production by flood-affected farmers.

“More than 885,000 households (approximately 4.4 million people) are expected to benefit from the project. As an immediate response to the floods, the project will provide cash transfers to 800,000 flood-affected farming households to help restore crop production through the purchase of seeds, fertilizer, and other critical inputs,” the WB said.

The lender has also approved $200 million for the “Sindh Strengthening Social Protection Delivery System Project” that will strengthen the provincial social protection delivery system and enhance access to and utilization of mother and child health services.

Another $200 million was also approved for the “Sindh Integrated Health and Population Project” to improve both the quality and utilisation of basic reproductive, maternal, newborn, child and adolescent health and nutrition services.

“It will also help in the rehabilitation and reconstruction of health infrastructure that was damaged in the floods, disrupting the delivery of these services. The project will improve access to quality healthcare services for, the population of the selected government dispensaries in remote and peri-urban areas especially women, girls, and children, and in the flood-affected settlements in Sindh,” said the lender.

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China Contributes 43 New Foreign Firms to the 6% Growth in SECP Registrations

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The Securities and Exchange Commission of Pakistan has registered 2,617 new firms this year, a 6% increase from 2023, with assistance from the Special Investment Facilitation Council. This increases the overall number of businesses that are registered to 231,111.

Non-profits, trade associations, and public unlisted firms make up 4% of these, while private limited corporations make up 55% and single-member companies 41%. It is noteworthy that 99.8% of the registrations were done online, demonstrating SECP’s attempts to digitise.

Real estate has 237 new businesses, services has 306, and trade has 377 new businesses. These are the main sectors exhibiting growth. While the healthcare and textile industries each had 49 new businesses, the education sector saw 101.

China contributed the most, adding 43 new companies, out of the 61 new companies that were registered as a result of foreign investment.

These recently registered businesses are anticipated to decrease imports, increase domestic production, and contribute to closing the trade deficit.

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PSX reaches an all-time high as the KSE-100 Index surpasses 86,000 points.

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The Pakistan Stock Exchange (PSX) has achieved a significant milestone, as the benchmark KSE-100 Index has attained an unprecedented peak.

On Tuesday at midday, the index ascended by 788 points, attaining a record high of 86,846 points. Following the ratification of the constitutional amendments, the stock market has increased by 1500 points over a span of two days.

Earlier today, the KSE-100 Index increased by 683 points, attaining a value of 86,741 points, before concluding at this new apex.

The bullish trend was apparent from the commencement of the trading session, with the index rising an additional 555 points to reach 86,612 points throughout the day. The reinstatement of the 86,500-point threshold signifies robust market performance.

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In three months, Pakistan’s IT exports increased by 33.54 percent.

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During the first three months of FY 2024-25 (July to September), Pakistan’s IT export remittances hit US$ 876 million, a notable 33.54 percent rise from US$ 656 million during the same period previous year (FY 2023-24).

In a statement, Minister of State for IT and Telecommunication Shaza Fatima Khawaja stated that the amount of money sent home by the export of ICT services was US$ 292 million in September 2024, a 41.7% increase from US$ 206 million in the same month the previous year.

She stated that efforts to make it easier for businesses to conduct business in the nation are the reason why IT exports are rising and that actions are being taken to increase them.

In response to the Prime Minister’s directions, Shaza Fatima stated that the Ministry of IT and Telecommunication, the Pakistan Software Export Board, and the IT industry are dedicated to boosting IT exports with the full assistance of the Special Investment Facilitation Council (SIFC).

A trade surplus of US$ 764 million was recorded by the IT & ITeS sector in the first three months of FY 2024–25, accounting for 87.21 percent of all ICT export remittances.

Over the same period last year, this surplus represents a 36.67 percent gain over US$ 559 million. The services industry as a whole, however, experienced a trade deficit of US$ 699 million during this period.

The largest of all service sectors, ICT export remittances from July to September 2024, were US$ 656 million, followed by “other business services” at US$ 374 million.

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