Once IMF programme resumes: ADB to disburse over $1.5bn to support BoP

ISLAMABAD: The Asian Development Bank (ADB) will disburse over $1.5 billion to Pakistan in the ongoing calendar year for balance of payment support, once the International Monetary Fund’s Extended Fund Facility (EFF) programme restores, it is learnt.

Official sources revealed to Business Recorder that the government had requested the bank in June 2022 for expediting the approval process and subsequent disbursement for around $2 billion to support the balance of payment. The matter was also raised in a call between Country Director ADB Yong Ye and Federal Minister for Economic Affairs, Sardar Ayaz Sadiq on Friday.

Sadiq urged the ADB director to extend support in other areas as well such as value added and robust cold chain industry in agriculture commodities.

He further apprised the ADB that owing to current commodity and energy high prices across the globe, there is a high need for early approval of Counter Cyclical Facility. Sources revealed that the ADB hinted at the releasing of funds to Pakistan before December this year.

Sources further revealed that the ADB has current portfolio of around $8.5 billion and 40 ongoing projects. During the meeting, concerns were shown at slow-moving projects including Karachi Bus Rapid Transit (BRT) and Public-Private Partnerships in Punjab. Both sides agreed to hold a detailed meeting to review all projects with a special focus on slow-moving projects in the next 10 days.

Structural reforms for growth govt’s prime focus, Miftah tells ADB

According to an official statement, the Minister for Economic Affairs welcomed the ADB’s Mission to Pakistan led by Country Director Yong Ye, Deputy Country Director Asad Aleem, and Shaukat Shafi senior project officer in the ministry to discuss the ongoing ADB portfolio in Pakistan. Matters of mutual interest were discussed in the meeting.

The Minister for Economic Affairs appreciated the ADB’s long standing and trusted partnership since 1966 and generous and timely support of over $25 billion, for priority areas, including economic reforms, energy, road and transport, agriculture and water and social sector.

The country director ADB briefed the minister about the ADB’s support to Pakistan in pre- and post-Covid days. The ADB supported Pakistan in areas, energy, transport, agriculture and natural resources, fiscal policy making, domestic resource mobilization public financial and debt management, public private partnership, SME development, financial and capital market, housing and green finance. The minister appreciated the efforts and highlighted the current flood situation of the country and expressed the need of collaboration to strengthen flood resilience.

The Minister for Economic Affairs appreciated the ADB’s assistance in the economic stabilisation of the country during the testing times of the pandemic.

The minister expressed gratitude to the country director ADB for visiting the ministry. The CD ADB also assured the ADB’s continued support for the priority government sectors highlighted in the meeting.

Copyright Business Recorder, 2022