John Wall: "An end result of the programme could be an improved image for Pakistan"

The World Bank aims to send a strong message that it wants promote the positive reforms within Pakistan put forward by President Pervez Musharraf's government.

The latest announcement follows news on Wednesday that the world's lending institution had approved the $300m loan to promote a privatised banking system in the Asian nation.

"There are other reforms on which we are having a dialogue with the government," said Abid Hasan, acting director of the World Bank in Pakistan.

"Those will be additional funds," Mr Hasan said - but he failed to disclose a figure.

Banking package

Tuesday's package is the latest in a series of loans the World Bank has made to Pakistan in the hope of promoting reform.

"Pakistan is working to develop a competitive private banking system free from the interference of vested interests and operating under a strong regulatory framework," the bank said in a statement.

"The government has demonstrated that it understands the essential links between putting in place all the fundamentals... and its ability to create conditions for sustainable growth in Pakistan," said John Wall, the World Bank's director of Pakistan, speaking in Washington.

Mr Wall told BBC News Online the $300m loan package would hasten the day when Pakistan could see its banks privatised.

A safe, sound and efficient banking system is crucial to a country's development, he said. "It is the blood supply and very fundamental to all kinds of economic activity."

Backing the US

Mr Wall also said the loan package had nothing to due with Pakistan's recent support of US attacks on Afghanistan.

"This particular reform had been prepared in the year," he said.

The attention given to Pakistan in the last six weeks or so has raised the country's visibility and allowed people to learn about Pakistan's reform programme, he said.

Pakistan's esteem has been raised among nations in recent weeks due to its support of US action against Afghanistan's ruling Taleban.

More loans

Previously, the world's attention was on Pakistan's poor reputation and credibility - which Mr Wall said is deserved because of past actions and policies.

"An end result of the [reform] programme could be an improved image for Pakistan," Mr Wall told BBC News Online.

Also on Wednesday, the Islamic Development Bank (IDB) approved $50m (�35m) for Pakistan and Turkey to help finance imports of energy products.

The announcement was made by the IDB at its 26th annual meeting being held in Algiers.

Pakistan's Oil and Natural Resources Ministry received $25m to fund imports of crude and refined products.