Aid pact salvaged
The World Bank has decided to continue providing aid to Pakistan's US $2.2-billion Ghazi Barotha Hydroelectric Power Project after nearly withdrawing from the scheme due to human rights and environmental concerns. The bank had repeatedly expressed unease at Islamabad's lack of seriousness about implementing resettlement and environmental pacts under the project.
The World Bank had earlier set a January 31, 2003, deadline for the Pakistani government to keep its promises. The government's economic affairs division has now convinced it that all conditions stipulated under the loan agreement have been met. The World Bank will now release the final us $52 million instalment of the total us $350 million loan.