Kathmandu, September 14:

The World Bank Group’s financial commitments to South Asia rose by 50 per cent in fiscal 2007 and touched $6.9 billion.

According to a report, the bank extended loans, credits, grants, equity investments, and guarantees totalling nearly $6.9 billion to South Asia in fiscal 2007, an increase of $2.3 billion over the previous year.

The eight countries of South Asia are using the bank’s support in more than 78 projects designed to overcome poverty and enhance growth by improving education and health and promoting private sector development, building infrastructure and strengthening governance and institutions.

India received the largest chunk of $3.75 billion or more than half of the total amount, Pakistan was the second largest recipient at $958 million. Nepal was at the fifth position and received a total of $103 million (both loans and grants) after Bangladesh at $379 million and Afghanistan at $312 million. Sri Lanka received $72 million and Bhutan took home $30 million.

Of this amount in the development assistance, the International Bank for Reconstruction and Development (IBRD) contributed $1.6 billion, the International Development Association (IDA) supported $4.03 billion, the International Finance Corporation (IFC) provided $1.18 billion and $76 million came from the Multilateral Investment Guarantee Investment Agency.

“South Asia is home to the largest number of people in the world living below one dollar a day, so the agenda for poverty alleviation in the region remains very large,” said Praful Patel, World Bank vice-president for South Asia.

“The lending numbers from the IDA and IBRD in fiscal year 2007 are in line with the scaling up strategy we developed for the region three years ago,” he added.

Globally, the World Bank Group committed $34.3 billion in fiscal year 2007, up $2.7 billion (7.8 per cent) from fiscal year 2006. India was by far the largest borrower from IBRD and IDA, accounting for $3.75 billion, or 15 per cent of total lending from these two institutions.

The World Bank’s programme in India focuses on providing basic services such as access to clean water and education, improving infrastructure for rural areas, and employment.

The increase also reflects $700 million in lending to the health sector to India, which was carried over from the previous year.

Nearly 60 per cent of the World Bank Group’s commitments to South Asia came from IDA, and more than two-thirds of this lending financed projects in the areas of rural development and human development.