The Norwegian Government today agreed to cancel USD 20 million (132 million Norwegian Kroner) of a total USD 46 million debt owed by Pakistan to Norway. In return, the Government of Pakistan has agreed to mobilise an equivalent amount of local currency for development and poverty reduction purposes by the end of 2008.

- We are pleased that these funds now can be used for the reconstruction and rehabilitation of Pakistan after the earthquake in 2005, says the Norwegian minister of International Development Erik Solheim. The funds will be channelled through the Pakistan Earthquake Fund (PEF), which is managed by the Asian Development Bank (ADB). The PEF’s purpose is to support rehabilitation and reconstruction after the devastating earthquake suffered by Pakistan in 2005. The agreement between Norway and Pakistan provides that priority must be given to social infrastructure and health and education services in the North West Frontier Province. Particular emphasis is to be given to the reconstruction and rehabilitation of primary school buildings.

Press Contact: Adviser Marte Lid 91 65 05 28