Crisis Averted? ADB to Provide $7.1 Billion to Pakistan Over 3 Years

Asian Development Bank (ADB) will provide $ 7.1 billion in financing to help Pakistan achieve inclusive and sustainable growth over the next three years, its senior official said. “ADB plans to significantly increase the country’s sovereign operations to $7.1bn over three years,” Wencai Zhang, vice president of the Manila-based lender, said in a statement. “Along with its continued focus on energy, infrastructure development, and institutional reforms, ADB is also re-engaging in education and health, and social safety net through income support programme.” Zhang said the financial package was planned under a country partnership strategy for 2018-2020. He also appreciated the Pakistan Tehreek-e-Insaf (PTI) government’s 100 Days Agenda. Zhang had met a high-level delegation including Finance Minister Asad Umar, Planning Minister Khusro Bakhtiar, Education Minister Shafqat Mehmood, and Adviser to Prime Minister on Institutional Reforms Dr Ishrat Hussain during visit to Pakistan In his meetings, Zhang congratulated the PTI government on assuming office and noted the government’s 100 Days Agenda that prioritises revitalising economic growth, transforming governance and revolutionizing social services, said a statement issued by ADB on Friday. Under the current country partnership strategy 2015-2019 and the country operations business plan 2018-2020, ADB is focused on ensuring high, sustained, and inclusive growth for Pakistan. Zhang said the country’s economic growth momentum in recent years was driven by domestic demand and improvements in security, energy supply, and public infrastructure projects. ALSO READ ADB Projects Inflation in Pakistan to Reach 6.5% in FY2019 However, the widening current account and fiscal deficits are key challenges to the economy, he added. ADB vice president stressed the importance of economic stability and offered ADB’s support in improving the country’s competitiveness, promote private sector, increase trade openness, and transform the institutions and economy. Zhang said Pakistan is an important member of the Central Asia Regional Economic Cooperation (Carec) to which ADB is extending programmatic support to deepen regional economic integration. Zhang said ADB is willing to support Pakistan in developing economic corridors within the framework of Carec and ADB’s Strategy 2030 ahead of the Carec Ministerial Conference in Ashgabat, Turkmenistan in November. “ADB will help Pakistan upgrade its transport networks and trade facilitation with neighboring countries and transform the physical connectivity gains into economic gains through the promotion and development of economic corridors and special economic zones,” he said. ADB has committed more than $32bn in project and technical assistance to Pakistan as of September 30. Back in July 2017, The Asian Development Bank (ADB) had indicated that it could give over US 6 billion dollars in loans to Pakistan over the next three years, as the government had asked for more assistance. The Manila-based lending agency would provide the assistance under the three-year (2018-20) operation plan for Pakistan, said ADB Vice President Wencai Zhang.