WORLD BANK GROUP AND PAKISTAN The World Bank was created in 1944 In its initial form—the International Bank for Reconstruction and Development (IBRD)—it focused on rebuilding the war-torn countries of Europe It also provided large amounts of assistance to Japan It was only after this task had been accomplished that the Bank turned its attention to development Two more affiliates were added to the original IBRD: the International Finance Corporation (IFC) was established in the 1950s to provide help to the private sector in the developing world In 1960, the International Development Association (IDA) was created to provide “soft” funding to the poor countries Whereas the IBRD and IFC raised most of their resources in the international financial markets, the IDA was funded by grants from the rich industrial countries In the late 1980s a third affiliate was added to the Bank; called the Multilateral Investment Guarantee Agency (MIGA), it provides insurance to the companies against political risks in the developing world The IBRD, IFC, IDA, and MIGA together have come to be known as the World Bank Group All four affiliates of the World Bank Group have been active in Pakistan

The World Bank’s association with Pakistan began in 1952 For the first eight years, the Bank financed projects on close to market terms, but with the creation of the IDA, poor countries such as Pakistan gained access to soft credits In the period since 1952, Pakistan has received 68 loans and credits amounting to a total of over US$7 billion Nearly 39 percent of the assistance provided by the World Bank has gone into agriculture, 28 percent into energy, and 17 percent into industry The Bank has played a major role in getting Pakistan and India to agree to the division of the waters of the Indus River system The resources required for the execution of the Indus Replacement Works were mobilized with the help of the World Bank The Bank also assisted Pakistan in setting up a number of development finance corporations, including the Pakistan Industrial and Commercial Investment Corporation, the Industrial Development Bank of Pakistan, and the National Development Finance Corporation See also INTERNATIONAL MONETARY FUND

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