The World-Bank administered Multi-Donor Trust Fund was formed in August 2010 at the request of the Government of Pakistan and donor countries to respond to the crisis in Khyber Pakhtunkhwa, Federally Administered Tribal Areas and Balochistan. The MDTF provides a coordinated financing mechanism for the Government of Pakistan’s sector and investment projects and programs in KP, FATA and Balochistan. The MDTF also serves as a fund mobilization mechanism for the implementation of the Post-Crisis Needs Assessment (PCNA). It is one of the key instruments to support the PCNA’s comprehensive reconstruction and development strategy designed to restore infrastructure, services and livelihoods while addressing governance and other challenges that contributed to the crisis.

The objective of the MDTF is to support reconstruction and development aimed at recovering from the impact of the crisis and reducing the potential for renewed crises, as well as long-term rehabilitation. MDTF projects are executed by the Governments of Pakistan, KP, FATA, and Balochistan. Australia, Netherlands, Denmark, the European Union, Finland, Germany, Italy, Sweden, Turkey, UK, and the USA have contributed $159 million through the Fund to support these rehabilitation activities.