World Bank President James Wolfensohn on Friday said it was essential for India and Pakistan to find a peaceful solution to their problems in order to bring about economic and social stability in South Asia.

"I think the situation between India and Pakistan is one that I hope and pray that a peaceful solution would be found so that the two countries can work together economically and this could also bring social benefits for both the countries," Wolfensohn said.

This, he said, will have a 'profound effect' on the two countries and will go a long way in ensuring that 'people don't get killed'.

"It is a very important issue and I expect the leaders of both countries understand that," he said.

On the recent WTO summit at Cancun, Wolfensohn said India, Brazil, China and South Africa took up the cause of the developing countries.

While the rich countries wanted to put across their opinion, the developing countries were driving home their concerns on agriculture, he said.

"I am not really making a judgment on what happened," he said.

The discussions, he added, were going in a 'different equilibrium between rich and poor countries (at Cancun)'.

On declining financial assistance from the rich countries to the poor, the World Bank chief said it was for the industrial countries to take a view.

He said it was a situation of one billion people in the rich countries having 82 per cent of the resources against 5 billion people having about 20 per cent of the funds.

On Iraq, he said estimates had pointed to a need ranging between 50 to 75 billion dollars for reconstruction of the war-ravaged country and some decision could be taken within two weeks.