Rs 13 billion less than budgeted amount: government likely to receive $850 million from ADB in fiscal year 2014

Rupees 98 billion are budgeted for fiscal year 2013-14 as assistance from Asian Development Bank (ADB), however informed sources revealed that the government is likely to receive $850 million (around Rs 85 billion) next fiscal year. The budget also indicates that the entire ADB support would be for project support and there would be no programme/budgetary support extended by the bank.
The failure of the government to implement the agreed tax and power sector reforms with the International Monetary Fund (IMF) under the $7.6 billion 2008 Stand By Arrangement led to not only suspension of the Fund programme since 2010 but also a cessation of budgetary support by multilaterals. The ADB had indicated at the time that until and unless the government embarks on the reform agenda or procures a Letter of Comfort from the IMF it would not extend any budgetary support to the country. That condition continues for the fourth fiscal year running.
The ADB website notes that the Country Operations Business Plan (COBP) for Pakistan for 2013-14 (two years) shows a firm lending programme totalling $2.5 billion focusing on energy sector, rehabilitation of aging irrigation infrastructure, poor water management and urban services. Of this amount, $1.1billion is concessionary lending and $1.4 billion will be offered on commercial terms however concessionary lending will depend on Pakistan''''s rating under the performance-based allocation system.
The Economic Affairs Division (EAD) officials revealed that for the outgoing fiscal year, the government had budgeted inflow of $450.9 million from ADB; however the country received about $400 million till-date. Under the firm lending programme 2013 the country is expected to receive $433 million under the head of power sector rehabilitation project, $200 for social protection development project, $50 million for improving access to finance, $72 million for Rawalpindi wholesale market project and $38 million for multi-tranche financing facility Sindh cities improvement.
Pakistan''''s development finance requirements well exceed its own resources, and continued access to ADB funding will be contingent on the government''''s sound economic management, prudent fiscal policies, consistent portfolio improvement and successful project implementation, the bank warns on its website.