Co-Chairs' Statement
PAKISTAN DONORS CONFERENCE

Tokyo, Japan - April 17, 2009

The Government of Japan and the World Bank, as co-hosts of the 2009 Pakistan Donors Conference, with the representatives of 31 countries and 18 international organizations and agencies, conveyed strong international support to the Government of Pakistan and its development strategy.

Under the leadership of President Zardari, Prime Minister Gilani, and Mr. Tarin, Advisor to the Prime Minister on Finance, Pakistan is undertaking a home-grown strategy for growth and poverty reduction. This will be implemented with the support of the IMF and other development partners.

Development partners pledged new financing for Pakistan totaling more than 5 billion US dollars over the next two years to provide additional support to social safety nets, human development, and pro-poor development expenditures. Donors also reaffirmed their commitment to existing programs (currently totaling more than 15 billion US dollars) for ongoing and medium-term development initiatives aimed at helping Pakistan reduce poverty and enhance economic growth.

The actions of development partners included financial support, but also broader support for development and stability in the regional context of Pakistan and its neighbors. A meeting of the "Friends of Democratic Pakistan" preceded the donor conference where development partners welcomed and took into account the Government's commitment to address security concerns and noted the need for strong regional cooperation to address common issues.

The meeting addressed Pakistan's reform program, financing needs, and medium term strategy. The Government of Pakistan presented a statement outlining its overall approach to addressing the multiple and interlocking challenges which it confronts. Partners welcomed the direction of the Government's strategy including the need to continue implementing policies to sustain macroeconomic stability, expand social safety nets, and lay the foundation for accelerated growth. Development partners commended Pakistan on addressing the macroeconomic crisis and taking politically difficult reforms. At that same time they noted the need to maintain reform momentum, particularly in light of the global economic situation. Of particular concern is low tax revenue generation and its impact on macroeconomic planning.

Pakistan's short-term financing needs focus on protecting the poor, maintaining pro-poor services, and continuing programs in health, education and social protection. In particular, development partners were supportive of expanding social safety nets. Participants emphasized the importance of ensuring transparency and good governance in implementation of the safety nets, as well as rapidly increasing capacity for monitoring and evaluation.

There was broad support for the Pakistan Poverty Reduction Strategy and its articulation at the meeting with a focus on safety nets, skills development, social mobilization, education, and health. Delegations also recognized the importance of accelerating investments in infrastructure, agriculture, power, and irrigation over the medium term. The importance of a long term strategy was emphasized, particularly given the current security challenges.

Participants also noted concern about the security situation in Pakistan, and the impact on development, the investment climate, and growth. The meeting addressed how to undertake effective development work in the face of rising terrorist attacks. The Friends of Democratic Pakistan, which took place immediately prior to the Donors Conference addressed security issues, development, and regional cooperation.

Participants recognized the need for ongoing cooperation among partners and Government with a view to increasing coordination, making funding both more predictable and more accountable and strengthening implementation. The meeting concluded that the Government of Pakistan will host a Pakistan Development Forum (PDF) within one year's time.