PAF may get additional funds from World Bank

The World Bank (WB) has — after the mid-term review of the Poverty Alleviation Fund (PAF), Nepal — decided to continue to help it and provide additional grant.

"With the success of the previous programmes, the Bank is positive on extending more grants," said the newly-appointed vice-chairman of the PAF, Vidyadhar Mallik. "The present $100 million grant that was supposed to be for the duration till 2012 is going to be disbursed by 2011," he said, adding that unlike government agencies, the Fund is very efficient in fund disbursement. "It will reach to the community-level immediately."

"However, for the effectiveness of the programme, the government should also take ownership so that PAF can diversify its programmes," Mallik added.

The World Bank has also dubbed PAF’s actions towards reaching the targeted poverty-ridden population as suitable.

Similarly, the Fund's programmes and projects have also facilitated the implementation of the government’s local-level plans, the report has said, adding that it has also appreciated the transparency and the governance of the PAF’s projects.

The World Bank has conducted the assessment based on the field visit of the districts and also conducted meetings with high-level government representatives, representatives from the ministries concerned, Constituent Assembly members, and working committee’s members.

Likewise, the poverty-stricken population has also recognised the improvement that the PAF’s programmes have brought into their lives, calling it first of its kind.

"Since these people get the money in their own hands it has resulted in their confidence build-up and has made them more optimistic," said Rajbabu Shrestha, Executive Director of the Fund. "It funds for income generating activities (IG) of basic infrastructure."

"The programmes have relieved the poor people from the burden of high interest rates charged by local money lenders," he said, adding that they are being empowered as they are forming the groups or community organisations (CO) and cooperatives to help each other. "The fund, given to them, works as a revolving fund. The needy can take loan and go on paying."

The basis of the average income of the targeted poverty-stricken households has increased and improved the savings and income of the population and have affected positively in their lives.

"Along with economic improvement and social inclusion, the PAF has become a synonym of the voiceless people," Mallik said, adding that the target can also be restructured.

PAF’s projects have been able to facilitate 507,757 households belonging to 1,655 VDCs. Among all the facilitated households, 29 per cent households were scheduled caste and 27 per cent belonged to janjati and 46 per cent were of other categories.

The Fund — established by the government — with the goal of helping the poor find their way on a sustained path out of poverty, is being funded by the World Bank.

The Fund started working from the 25 districts is looking to extend to 15 more districts. "Its doing homework on extending the programmes to 55 districts," he added.