ISLAMABAD, Sept 16: The government and the Asian Development Bank signed here on Monday $2.4 billion agreement to reduce the incidence of poverty to less than 15 per cent by 2011.

“Initially we have signed the agreement worth $2.4 billion assistance but ADB aid portfolio will increase if Pakistan continues to implement its reform agenda”, said the visiting ADB Vice President Myoung-Ho Shin.

Speaking at a joint news conference along with Minister for Finance Shaukat Aziz, Mr Shin, however, warned that the ADB assistance was conditional and could be withdrawn if Pakistan did not stay the course.

“We hope that the new political government will continue implementing the reform agenda beyond October this year”, he added.

He said that the poverty reduction partnership agreement set out the common vision of both the Government of Pakistan and the ADB for drastically reducing poverty in the country.

The agreement sets a medium-term target of reducing the incidence of poverty to 25 per cent by 2006 and raising the GDP growth to over 5 per cent. It supports the government’s objective of reducing poverty below 15 per cent and raising GDP growth to 6 per cent by 2011.

The agreement was signed by Dr Waqar Masood Khan, secretary economic affairs division (EAD) and ADB’s Country Director Marshuk Ali Shah.

Mr Shin said that the ADB will be for governance reform, more assistance for health & education, water supply and urban development, agriculture and rural development, energy, transport and industry sectors.

He was hopeful that the ADB’s new financial support will promote good governance, generate productive jobs and support human development by improving the access of the poor to education and health programmes.

Mr Shin said that the Bank’s support will aim at promoting gender equality and the support of development of small and medium enterprises. “We will also encourage the private sector of Pakistan and promote regional cooperation”, he added.

Mr Shin further said that the ADB which has offered roughly $1 billion for 2002, will maintain the same level of financial support in 2003.

He praised the government for implementing reform agenda and said that the ADB fully supported the government’s long-term goals of attaining universal primary school enrolment and reducing the population growth rate to less than 1.6 per cent by 2011. Mr Aziz said that the government was very thankful to ADB for being the biggest donor for Pakistan.