Next 3 years: $8.7bn ADB assistance ‘in the pipeline’

ISLAMABAD: The Asian Development Bank (ADB) has reportedly pledged $8.7 billion for various projects and programs for Pakistan during the next three years, it is learnt.

ADB Vice-President Shixin Chen has concluded a five-day visit to Pakistan during which he met with Prime Minister Imran Khan, key ministers, and other senior government officials.

Official sources, who attended these high-level engagements, revealed to Business Recorder that financial assistance to the tune of $8.7 billion from the ADB is in the pipeline during the next three years.

This was also shared during the recent engagements.

The focused areas of $8.7 billion would be urban development, roads, energy, social protection, education, health, and budget support.

ADB mission to hold talks with finance minister

Sources revealed that the government is expecting $400 million from the Bank in the next three months, which would bring the total commitment to $2.5 billion during the current fiscal year.

Chen reiterated the ADB’s commitment to supporting Pakistan’s economic recovery from the coronavirus pandemic and the country’s development agenda.

Chen discussed the ADB’s ongoing and emerging areas of support in meetings with Minister for Finance and Revenue Shaukat Tareen, Minister for Economic Affairs Omar Ayub, Minister for Energy Hammad Azhar, Prime Minister’s Special Assistant on Climate Change Malik Amin Aslam, Deputy Chairman Planning Commission Muhammad Jehanzeb Khan, and Secretary Benazir Income Support Programme Ismat Tahira and others.

“The people of Pakistan have shown remarkable resilience in the face of Covid-19 and the country’s rapidly building momentum towards economic recovery is testament to this,” said Chen. “As one of Pakistan’s largest development partners, ADB has taken swift actions to support Pakistan’s vaccination and social protection efforts, and external financing requirements. We will continue to work with the government, private sector, and other partners to further develop green, resilient, and quality infrastructure; enact reforms, and strengthen key sectors vital to the country’s growth.”

Chen visited the National Power Control Centre in Islamabad where he was briefed about the country’s power load management system and its expansion plans under an ADB financing facility.

He visited a basic health unit near Islamabad that has been fitted with solar panels under ADB’s Access to Clean Energy Program, which has so far provided solar facilities to over 10,700 schools and more than 700 basic health units in mostly remote, off-grid areas.

Chen also visited the Ehsaas One-Window Centre in Islamabad for beneficiaries of Pakistan’s flagship social protection program.

Chen also met Punjab provincial Finance Minister Makhdum Hashim Jawan Bakht and Planning and Development Board Chairman M Abdullah Khan Sumbal among other senior officials.

He discussed the ADB’s support in strengthening private sector participation with Lahore Chamber of Commerce and Industry President Mian Nauman Kabir.

Since 1966, the ADB has committed over $36 billion in loans, grants, and other forms of financing to promote inclusive economic growth in Pakistan and improve the country’s infrastructure, energy and food security, transport networks, and social services.

The ADB and Pakistan’s country partnership strategy, 2021–2025 focuses on three priorities: improving economic management, building resilience, and boosting competitiveness and private sector development.

The ADB’s assistance helps improve macroeconomic management and resilience, and infrastructure and urban sector investments that support rural connectivity and urban services.

The bank’s support for public–private partnerships and improved access to finance has boosted competitiveness and private sector development.

Going forward, the ADB will support an enabling environment for digital transformation through policy improvements and strengthening public institutions and relevant infrastructure.

Copyright Business Recorder, 2022