Development cooperation ,16.12.2014

World Bank administered KP/FATA/Balochistan Multi-Donor Trust Fund


Pakistan's border regions of Khyber Pakhtoonkhwa (KP), Federally Administered Tribal Areas (FATA) and Balochistan suffer from prolonged conflict and social instability. The socio-economic development in these areas is significantly lagging behind the rest of the country. The lack of economic opportunities and public services, as well as weak governmental structures, has created a breeding ground for extremist Islamist ideology, the development of a variety of terrorist groups, and crime. Also, the status of women is particularly poor in these areas. The Multi-Donor Trust Fund (MDTF) administered by the World Bank supports the development of Pakistan's border regions and the implementation of Pakistan’s reconstruction program. It also reduces the possibility of an escalation or recurrence of conflict. The Fund complements and strengthens the Pakistani government’s action in the following areas: (i) efficient, sustainable and reliable provision of basic services; (ii) community-based development of livelihoods, infrastructure and services; (iii) creating market opportunities and revenue-generating activities; (iv) recovery from the crisis, supporting peace-building and reconstruction; and (v) capacity development, institutional performance and efficiency. The MDTF benefits 4.87 million people in the region. Supporting Pakistan's border areas is part of a regional approach and is in accordance with Finland’s action plan for Afghanistan. Supporting the development of the border regions of Afghanistan and Pakistan is a logical and coherent part of Finland's efforts to support the development and consolidation in Afghanistan. Carrying out efficient development interventions in the turbulent Pakistani border areas is very challenging, but at the same time necessary for the stability of South Asia. Finland has granted 5.6 million euros to the MDTF in 2010. By replenishing the Fund with 2 million euros in 2014, Finland will continue to support the Fund's activities until 2020.

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Funding decision  16.12.2014

2 000 000 €

Objectives monitored by OECD's Development Assistance Committee

  • Participatory development/Good governance
  • Gender equality

Field of activity

  • Public sector policy and administrative management 20%
  • Multisector aid for basic social services 40%
  • Reconstruction relief and rehabilitation 40%

Special target group

  • women
  • girls
  • children
  • youth
  • indigenous peoples / ethnic minorities

Funding channel




Code for the object of funding