World Bank provides support to rural areas Pakistan

Washington, United States of America – The World Bank 2007-10-11 approved additional financing of US$75 million to theSecond Poverty Alleviation Fund (PPAF) Project, a program that has touched the lives of more than ten million people since it began operations in 2000. Under PPAF over 10,000 community infrastructure projects have been completed, and more than half of these provide safe drinking water or access to safe sanitation, 1.2 million micro-credit loans have been provided with 99.8% repayment rate; and over 200,000 people have been trained in various skills.

PPAF is an apex organization and is currently working with 70 Partner Organizations who have formed over 66,000 community groups in more than 27,000 villages in 111 districts across the country. It aims to reduce poverty in communities by providing them with micro credit, small-scale infrastructure, training and capacity-building through civil society organizations PPAF is also helping communities rebuild their lives after the devastating earthquake, by supporting reconstruction of 100,000 houses and 350 schemes including water supply, link roads, and health and education facilities in the earthquake affected areas; and training nearly 20,000 people in earthquake resistant construction methods.

This additional financing will support a new social mobilization component and aims to mobilize five million people in 25 of the country’s poorest districts into community organizations (COs) and local support organizations. This will create the foundation for the scaling up of PPAF poverty reduction programs under the planned Third Poverty Alleviation Fund Project, and other activities; including linking with local government and development programs of provincial and federal governments.

“The PPAF has proven tremendously effective in reaching the poor. In six years, there has been a tenfold increase in the number of loans made to poor people in Pakistan,” said Yusupha Crookes, World Bank Country Director for Pakistan. “This additional financing will support social mobilization, which is being recognized as a mechanism for enhancing sustainability, improving efficiency and effectiveness, and allowing poverty reduction efforts to be taken to scale.”

Support for social mobilization is consistent with the World Bank Country Assistance Strategy (CAS 2006-2009) and an essential component of government strategy for achieving Millennium Development Goals.

“This project will ensure that community organizations of the poor and their federations will be managing their own development through transparent, equitable, inclusive, accountable and community demand-driven processes,” said Qazi Azmat Isa, World Bank Senior Community Development Specialist and project team leader. “Social mobilization reverses power relations in a manner that creates voice for poor people, especially women and marginalized groups.”

The project will also finance a leadership cadre of 250,000 women and men who will be trained to manage the Community Organizations and Federations and to mange the linkages with outside organizations for long-term sustainability.

The credit from the International Development Association (IDA), the World Bank’s concessionary lending arm, carries a 0.75 percent service fee, a 10-year grace period, and a maturity of 35 years.

For more information on the Bank’s work in Pakistan, please visit

For more information, please visit the Projects website

Auteur: Redactie Infrasite

Bron: The World Bank