IBRD Loan: US$100 million
TERMS: Grace Period= 8 years; Maturity= 20 years
OBJECTIVE: The objective of this loan is to support reforms designed to improve management and maintenance of the irrigation system to ensure its long-term physical and financial sustainability. A well-maintained irrigation system is critical to ensure that the tail-end users get their water entitlements. Irrigation is a critical factor for Pakistan’s economy. About 80 percent of the arable land and 90 percent of agricultural output are entirely dependent on irrigation, making this a critical sector for rural development and poverty alleviation.