The Asian Development Bank (ADB) plans to provide about $2.192 billion development assistance to Pakistan during 2005-06 for achieving higher growth and ensuring that the benefits of the ongoing structural reforms reach the poor. ADB Country Director to Pakistan Marshuk Ali Shah at a press conference here on Wednesday said that in 2005 the bank would provide $797 million for 11 projects (plus one standby project for $10 million). Of this amount, $354 million will be provided through the highly concessional ADF window and $443 million through the OCR.
Main areas of the ADB's assistance to Pakistan this year are infrastructure development, capacity building, agri business and rural development and modernisation, mega-city renewal and development, and support for public resource management and devolved social services. The programme also includes $5.65 million in grant assistance for 20 technical assistance projects.
He also said that in 2006 the bank would provide 13 loans worth $1,395 million for agriculture and natural resources, energy, law, economic management, transport, and communications.
Marshuk showed satisfaction on the current economic situation and said that all the economic indicators were moving in the positive direction, however, he expressed the apprehension that rising high inflation in the country is likely to hit poverty alleviation.
In 2004, the ADB lent $709.2 million for seven public sector-financed projects with economic growth as the primary development objective. Of this amount, $228 million was from the ADF and $481.2 million from the OCR. Besides, a total of $28.6 million in grant assistance (including co-financing grants) was also approved for 22 technical assistance in 2004.
These include Sustainable Livelihoods in Barani Areas project ($41 million), Balochistan Resource Management programme ($133 million), Restructuring of Technical Education and Vocational Training projects in Balochistan and NWFP ($16 million and $11 million, respectively), Devolved Social Services Punjab ($150 million), NWFP Road Development Sector and Sub-regional Connectivity project ($301.2 million) and Multi-sector Rehabilitation and Improvement project for the AJK ($57 million).
The ADB director said that of these, the most innovative projects included Balochistan Resource Management programme, NWFP Road project and the Multi-sector Rehabilitation project for the AJK. He said that the focus of these projects was to support the Government of Balochistan's pro-poor development efforts by improving governance, public resource management, and social sector service delivery.
About the NWFP Road project, he said, it aimed at increasing access of the rural population in the NWFP to social services and markets, and improves sub-regional cooperation and trade by facilitating road transport to Afghanistan and the Central Asian Republics. While the AJK project has the objective to improve the living conditions, quality of life, and economic prospects in the AJK by rehabilitating and reconstructing essential physical and social infrastructure in education and health sectors that has been damaged by years of neglect, he added.
He also said that the ratio of delaying ADB's projects has come down to 17 percent in 2004 as against 30 percent two years back, showing the bank's efforts to help Pakistan in catching higher sustainable GDP growth.
However, the bank was fully aware and trying to abolish hurdles in the way of about 10 delayed projects.
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