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World Bank Gives Pakistan $900 Million in Low-Interest Loans

By Jeremy Torobin

June 4 (Bloomberg) -- The World Bank said it approved $900 million in loans for Pakistan aimed at improving education in Punjab and Sindh provinces and expanding a development project already operating in 35,000 villages.

The Washington-based lender announced the aid today in a statement. The projects will total $350 million for Punjab, $300 million for Sindh and $250 million more for a poverty- alleviation effort already funded with $646 million since 2000, the lender said.

“Even where there have been gains in student enrollment as in Punjab and Sindh, these have yet to translate into improved student learning,” said Yusupha Crookes, the World Bank’s country director for Pakistan, in an e-mailed statement. “These education projects will put a greater emphasis on the quality and relevance of education.”

President Barack Obama’s administration is seeking money to help Pakistan fend off a Taliban insurgency and to support the war effort in neighboring Afghanistan. The U.S. is increasing forces in Afghanistan and on May 11 replaced the top American commander in the country.

The loans come from the World Bank’s concessionary loan unit, called the International Development Association. They have a 0.75 percent “service fee,” a 10-year grace period and a 35-year term, the World Bank said.

The bank said primary-school enrollment in Pakistan rose to 56 percent in 2007, from 42 percent in 2001. Still, Pakistani children are the “least likely” in South Asia to attend school, it said.

To contact the reporter on this story: Jeremy Torobin in Washington at jtorobin1@bloomberg.net

Last Updated: June 4, 2009 18:27 EDT

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