WHAT IS THE PURPOSE OF THE WORLD BANK?

The World Bank is one of the world’s largest sources of funding and knowledge to support
governments of member countries in their efforts to invest in schools and health centers, provide
water and electricity, fight disease and protect the environment.

The World Bank is not a ‘bank’ in the common sense. The World Bank is an international
organization owned by the 184 countries ¾ both developed and developing ¾ that are its
members.

Since it was set up in 1944 as the International Bank for Reconstruction and Development. The
number of member countries increased sharply in the 1950s and 1960s, when many countries
became independent nations. As membership grew and their needs changed, the World Bank
expanded and is currently made up of five different agencies.

All support to a borrowing country is guided by a single strategy that the country itself designs with
help from the World Bank and many other donors, aid groups, and civil society organizations.

WHAT IS THE DIFFERENCE BETWEEN THE WORLD BANK AND A

COMMERCIAL BANK?

While it lends and even manages funds much like a regular bank, the World Bank is different in
many important ways. It is owned by 184 countries. The financial support and advice the World
Bank provides its member countries is designed to help them fight poverty. And unlike commercial
banks, the World Bank often lends at little or no interest to countries that are unable to raise money
for development anywhere else.

Countries that borrow from the World Bank also have a much longer period to repay their loans
than commercial banks allow. In some cases, they don’t have to start repaying for ten years.

Basically, the World Bank borrows the money it lends. It has good credit because if has large, well-
manages financial reserves. This means it can borrow money at low interest rates from capital
markets all over the world and channel it to developing countries, often at much lower rates of
interest than what markets would charge these countries.
Economic Comparison of Pakistan 1960-2005

RATE OF DOLLAR AS COMPARE TO PAKISTANI CURRENCY

Year Gross US Dollar Inflation Per Capita

Domestic Exchange Index Income
Product (2000=100) (as % of
USA)
1960 20,058 4.76 Pakistani 3.37
Rupees
1965 31,740 4.76 Pakistani 3.40
Rupees
1970 51,355 4.76 Pakistani 3.26
Rupees
1975 131,330 9.91Pakistani 2.36
Rupees
1978 283,460 9.97 Pakistani 21 2.83
Rupees
1985 569,114 16.28 30 2.07
Pakistani
Rupees
1990 1,029,093 21.41Pakistan 41 1.92
i Rupees
1995 2,268,461 30.62 68 2.16
Pakistani
Rupees
2000 3,826,111 51.64 100 1.54
Pakistani
Rupees
2005 6,581,103 59.86 126 1.71
Pakistani
Rupees
GDP - composition by sector

21%

agriculture
Industry
55% Services

24%

Inflation rate in pakistan

2008 2009 2010* 2011**
12% 13.5% 20.8% 11.7%

Comparison with India

DATA ON GDP AND ECONOMIC INFORMATION

Central bank Reserve Bank of India

International Reserves US$ 293.12 billion (Source: IMF; Data updated: November
2010)

Gross Domestic Product - GDP US$ 1.430 trillion (2010 estimate)

GDP (Purchasing Power Parity) 4.001 trillion of International dollars (2010

estimate )

Real GDP growth

2000 2001 2002 2003 2004 2005 2006 2007

4.4% 3.9% 4.6% 6.9% 8.1% 9.2% 9.7% 9.9%
2008 2009 2010* 2011**
6.4% 5.7% 9.7% 8.4%

GDP per capita - current prices US$ 1,176 (2010 estimate)

GDP - composition by sector

agriculture: 17%

industry: 28.2%

services: 54.9% (2009)

Inflation

2008 2009 2010* 2011**

8.3% 10.9% 13.2% 6.7%

Unemployment rate

2008 2009 2010* 2011**

N/A N/A N/A N/A