ISLAMABAD, Nov 5: The Asian Development Bank has increased its assistance from $626 million to $950 million for the calendar year 2001 to help reduce Pakistan’s economic and financial difficulties.
“We will be providing additional $324 million this year and this assistance will be on a fast track basis to help Pakistan at this crucial juncture,” said Tadao Chino, President of the ADB.
Speaking at a joint news conference along with Finance Minister Shaukat Aziz here on Monday, Mr Chino said that out of $950 million, $350 million would be a concessional loan while the rest of the funding would be disbursed under Ordinary Capital Resources programme.
The ADB has so far disbursed $350 million during 2001, out of $626 million which were earlier approved. An official of the bank later said that the ADB would extend about one billion dollar for this year. It had committed $707 million for the year 2000.
The ADB chief said that he had held wide-ranging discussions with finance minister, governor State Bank, commerce minister, minister for Kashmir affairs and KESC managing director and discussed with them increased cooperation in various fields. But mainly, he pointed out, discussions were focussed on ADB’s future assistance for poverty reduction, financial sector reform, judicial reform, devolution plan and environmental protection programmes.
“The recent and ongoing events in the region have greatly worsened the economic situation in Pakistan. In view of the added difficulty, I assured the government of Pakistan that we will do whatever we can to help,” he said. In this connection, he pointed out that the bank had proposed to increase development assistance for this year to around $950 million. “This is a substantial rise from the $626 million planned before the events of Sept 11.”
He appreciated the ongoing economic and financial reforms in Pakistan and said: “I am very pleased to note that the government has given priority in its reform agenda to poverty reduction, improved governance, and the devolution of power.”
Pakistan, the ADB president said, had already implemented many difficult reform measures, “but much remains to be done”.
In reply to a question, he said Pakistan must stay the course of economic reform and development it had charted for itself.
He said Pakistan was currently among ADB’s largest borrowing member countries. “To make the best use of ADB’s limited resources, we must take into consideration a borrower’s track record when allocating further resources. In this regard we must ensure that resources devoted to our ongoing assistance programme are used efficiently and effectively,” he remarked.
“Pakistan faces many development challenges, specially in these difficult times, but I am confident that the government’s reform measures will bear fruits, and bring about a better future for the people of Pakistan,” he further said.
He told a reporter that humanitarian assistance was not the agenda of the ADB. However, he said whatever was possible, his bank was extending for Afghan refugees. He regretted that the infant mortality rate was very high in Afghanistan. “This is something very serious that out of 100 children, 49 do not survive,” he said, adding that life expectancy rate was also low compared to other countries of Asia.
Finance Minister Shaukat Aziz at this stage said that Pakistan’s economic and financial difficulties had been compounded due to Afghan refugees specially by the fresh influx. “But we are being assured special support for this purpose,” he added.
He termed as very substantive and constructive talks held with the ADB president which covered seven areas including financial sector reforms, social welfare funding, poverty reduction and the refugee issue.
He expressed hope that the ADB would continue to offer considerable assistance for poverty reduction, gender development and the private sector of Pakistan.
To a question, the ADB president lauded the holding of local bodies elections and setting up of district governments at the gross root level. “We are really impressed with the implementation of devolution plan in Pakistan,” Mr Chino said, hoping that general election would also be held in Pakistan to complete the democratic process.
Earlier, in his opening remarks, the finance minister said that the ADB had also offered $250 million for establishing Khushali Bank to extend microcredit to the poor people.
He said the government was trying to institutionalize reform programme with a view to ensuring good governance and reduce poverty. “Mr Chino is a great friend of Pakistan and is very much concerned about poverty in the country,” the finance minister said.
