Pakistan achieved more than 1 billion USD disbursement from ADB during FY which is the highest disbursement amongst all multilateral development partners. Minister Asad said the present government is taking various measures and reforms that will help the country steer out of current economic situation on both fronts i. As regards domestic challenges, we are focusing on fiscal consolidation, monetary policy and financial inclusion. He dilated on different new lending products including special policy based lending.
Pakistan to Get $ Billion in Loans From ADB in Three Years
The final allocation of the loans by year and sector will depend on available resources and the outcomes of the country performance assessments. Funding from other sources, including the regional pool set-aside under COL and OCR for regional cooperation and integration, will also be explored. Additional sources of financing include co-financing, regional set-aside, and non-sovereign funding to process projects beyond the stipulated resource envelope. Actual shares for specific ADB projects will be determined by project-specific considerations and available co financing.
The plan will provide coverage from to and will make resources available for a sovereign lending programme worth USD 7, million. The document for the business plan shows that resources will be divided among energy, agriculture, rural development, transport, water, natural resources, and other urban infrastructure and services. Apart from this business plan, ADB has also a signed a loan agreement that will offer USD m for improvement of the power transmission network in the country. Meanwhile, this new plan from ADB is also in alignment with their country partnership strategy completing in and the Vision
About 26 per cent of this will be provided through multi tranche facilities. Efforts will be made to mobilise co-financing for both investment and technical assistance projects, document reveals. The current environment in the power sector, in which receipts do not cover costs, means that every unit of power is sold at a loss that is either covered by a government subsidy or becomes part of the continuously accumulating arrears of the state-owned power companies. The new government settled outstanding arrears in the sector in July , but there are indications that debt will build up again unless structural reforms are undertaken in the sector.