Like all developing countries, Pakistan requires cash and resources to develop. The UN, the World Bank and the IMF, has had a major role in the structuring of Pakistan’s economy. 30% of the World Banks lending to Pakistan since 1985 has been used for agriculture and for irrigation. The largest portion of this aid has been given to the Agricultural Development Bank of Pakistan, which provides loans for agricultural activities. The next important allocation has been for research and extension. The World Bank has also provided loans for dairy farming and development of edible oil crops.
The World Bank has been involved in developing Pakistan’s irrigation system. In 1960, it helped to negotiate the Indus Basin Water Treaty between India and Pakistan, providing for the T arbela Dam. In 1975, the World Bank drew up a plan to improve the irrigation system in collaboration with the Pakistan government. It has been proposed that water charges be levied according to the amount of water used by the farmer.
Presently, water supply and charges are independent of each other, so there is no incentive to use water efficiently. A number of studies have been made to assess energy reserves, to identify problems and to upgrade the power transmission and distribution system. The World Bank is also assisting Pakistan through a search for better energy policies. The World Bank provides loans to lay gas pipelines from Sui to consumption centers. The Pakistan Industrial Credit and Investment Corporation (PICNIC) has received the bulk of loans. The World Bank has also lent directly to the industry, e.
Soil Salinity Salinity in both the rivers and on the land is one of the main and most costly results of over clearing and irrigation. Salinity is caused by changes in the delicate balance between surface water and groundwater systems. A small increase in the infiltration of water from the topsoil to the groundwater, due to rainfall or irrigation, can result in a dramatic rise in groundwater ...
g. , three fertilizer plants, a refinery engineering loan and credit for the Small Scale Sector have been funded.