Pakistan borrowed total $871 million from Asian Development Bank (ADB) in 2003, according to ADB annual report for 2003 released on May 4.
The largest borrower in 2003 was India with $1,532 million (25 percent of ADB total). Other big borrowers were People's Republic of China (PRC) $1,488 million (24 percent); Pakistan $871 million (14 percent); Bangladesh $532 million (9 percent); and Sri Lanka $275 million (5 percent).
According to ADB communication received here from Manila, total lending by the bank for public and private sectors operations in 2003 amounted to $6.1 billion for 85 loans to 66 projects.
The average loan size in 2003 was $72 million, compared with $64 million in 2002.
Twenty-three developing countries and one regional project received loans.
Operations of ADB totalled $6.3 billion in 2003, a 7.6 percent increase from 2002, according to the Report. Lending made up 97 percent of total operations - the highest lending level since 1997. ADB's private sector operations increased sharply in 2003.
Twenty-three developing countries and one regional project received loans.
LOANS: Transport and communications sector received the largest share of loans at $2,578 million (42 percent), followed by social infrastructure $1,131 million (19 percent), energy $757 million (12 percent), and finance $483 million (8 percent). Other sectors received 5 percent of total lending.
Of the total lending, loans with government guarantees amounted to more than $5.9 billion for 62 projects, comprising $4.5 billion for 33 loans from ordinary capital resources (OCR), and $1.4 billion for 47 loans from the concessional Asian Development Fund (ADF).
Thirteen were policy-based programs amounting to $1.1 billion representing 19 percent of total public sector lending. Of program lending, $912 million or 80 percent of the total came from OCR and $228 million or 20 percent from the ADF. Policy-based programs support DMC efforts to improve policy, institutional, and investment environments and to help meet short-term adjustment costs. Lending to the private sector without government guarantees, using OCR, amounted to $187 million.
Of the 62 public sector loans, 10 were for core poverty intervention projects and 29 were for poverty intervention projects. These 39 projects amounted to about $3 billion or 51 percent of total public sector lending.
In 2003, poverty partnership agreements were signed between ADB and the PRC, Kazakhstan, Kiribati, Samoa, Solomon Islands, Timor-Leste, Tuvalu, and Vanuatu.
TECHNICAL ASSISTANCE: A total of 315 technical assistance grants amounting to $176.5 million were approved in 2003. Of those, 74 were for project preparation; 165 for advisory and operational purposes; and 76 were for regional activities such as conferences, research, studies, and training.
Of the total amount for technical assistance, $87 million was from Technical Assistance Special Fund using current income from OCR; $37 million was from Japan Special Fund; and the remaining $53 million came from other multilateral and bilateral sources.
The largest recipient of country-specific technical assistance (excluding regional technical assistance) was India at $14.7 million (12 percent), followed by PRC $14.3 million (11 percent), Indonesia $12.5 million (10 percent), Afghanistan $10.5 million (8 percent), and Pakistan $10.0 million (8 percent).
Excluding regional technical assistance, the sector distribution was as follows: social infrastructure $24.5 million (20 percent), agriculture and natural resources $15.3 million (12 percent), energy $15.1 million (12 percent), transport and communications $11.4 million (9 percent), finance $10.7 million (9 percent), multisector $5.2 million (4 percent), and industry and non-fuel minerals about $3 million (2 percent).
Other technical assistance accounted for $41 million or 32 percent of the total.
GRANTS: Total grants amounting to $483.5 million were approved in 2003, consisting of grant co-financing of loan components amounting to $433.2 million from bilateral and multilateral sources, of which $404 million were administered by ADB and $29.2 million were on parallel financing; $35.3 million in projects financed by Japan Fund for Poverty Reduction; $ and 15 million from the Kuwait Fund for Arab Economic Development.
EQUITY INVESTMENTS: ADB approved a total $35.7 million in equity investments for regional investment funds and financial institutions.
CO-FINANCING: Co-financing and guarantee operations mobilised about $2.4 billion, representing 40 percent of ADB's total lending. Twenty-eight projects in 14 DMCs and two regional projects involved co-financing in 2003.
The PRC received the largest amount ($1,241 million), primarily from its domestic financial institutions, followed by Bangladesh with $598 million, and Thailand with $170 million.
Commercial co-financing and guarantee operations totalled $1.6 billion for 12 projects, of which guarantee operations amounted to $240 million.
Co-financing mobilised from ADB's bilateral development partners and multilateral financial institutions totalled $775 million for 18 projects comprising $433 million in grant funds and $342 million in loans.
PRIVATE SECTOR OPERATIONS: ADB's assistance in private sector operations in 2003 totalled $562.7 million, a $174 percent increase over the 2002 level. Assistance comprised loans of $187 million, equity investments of $35.7 million, guarantees of $240 million, and a complementary financing of $100 million.
The majority of projects in the private sector portfolio were exposures to India (16.7 percent), followed by Bangladesh (13.0 percent), PRC (11.0 percent), Vietnam (10.5 percent), and Philippines (9.3 percent). Regional projects accounted for roughly 18.9 percent of total exposure.
LOAN DISBURSEMENTS: Loan disbursements in 2003 totalled $3,816 million, of which $2,688 million (70 percent) came from OCR and $1,128 million (30 percent) from the ADF.
Disbursements on project loans totalled $2,135 million (56 percent of total), of which $2,057 million went to non-development finance institutions and $78 million to development finance institutions. Other types of loan disbursements included program loans $1,125 million (29 percent), sector loans $443 million (12 percent), and private sector loans $113 million (3 percent).