Pakistan and UK Department for International Development (DFID) have signed a Memorandum of Understanding (MoU) for Britain's budgetary support of Pound Sterling 80 Million to Pakistan for Poverty Reduction Budget Support up to the year 2008. Economic Affairs Division Secretary Khalid Saeed and Dr.Nemat Shafik, Director General, Regional Programmes, DFID, inked the MoU on behalf their respective governments. According to the understanding DFID will provide an assistance of Pound Sterling 80 million as grant support to the Government of Pakistan to implement Pakistan Poverty Reduction Strategy. This support will stretch over a period of three years, starting from 2006 to 2008 with an annual tranche of Pound 20 million each. Two supplementary grants of Pound 10 million each would also be paid alongside the second and third annual tranches. The first yearly tranche of Pound 20 million will be disbursed during the next month. In addition, Pound 5 million will be made available for Technical Assistance in support of the World Bank's Poverty Reduction Support Credit, which will be managed by the World Bank in consultation with the Pakistan government and DFID. This agreed amount will be used to reduce poverty in Pakistan. The purpose of this programme of budget support and Technical Assistance is to increase the amount and effectiveness of funds for poverty reduction, and achieving the Millennium Development Goals (MDGs). This programme will contribute to financing and further developing the capacity of the Government of Pakistan to implement its Poverty Reduction Support Programme (PRSP) in order to achieve the targets set out in the MDGs for the purpose. -end- 11 46 Local Time 08 46 GMT
