ISLAMABAD, June 29: The Asian Development Bank (ADB) has finalized $1.2 billion financial help for Pakistan, including $200 million for a mega uplift plan in Karachi.

“The ADB management has agreed to offer $3.6 billion funding for three years, which means $1.2 million assistance every year starting from 2006,” said a senior representative of the ADB in Pakistan, Marshuk Ali Shah.

He told Dawn here on Wednesday that the bank was extending $800 million for 2005, which would now be stretched to $1.2 billion to help undertake bigger mega uplift projects.

Mr Shah explained that over $300 million would be provided for sub-regional connectivity project to link Pakistan with the Central Asian States. This assistance, he said, was part of an infrastructure development programme to promote effective trade relations with the Central Asian States through Afghanistan.

He said $300 million would be extended for providing a linkage between the Gwadar port and Port Qasim as well as the Karachi port. “This is one of our major interventions to further help develop ports in Pakistan,” said the ADB senior representative.

The bank, he said, would also disburse handsome funding for improving rural health, water supply schemes and roads.

He said $200 million would be offered for second phase of resource management programme for Punjab in 2006. Earlier, $150 million were extended for the first phase of the programme.

“Then we have decided to provide $42 million soft loan for four agencies of Fata,” Mr Shah said, adding that the purpose of this funding was to help strengthen tribal infrastructure. Fata assistance, he said, would also be used for building a small dam there.

“The year 2006 would also witness over $150 million funding for strengthening and deepening of the Khushhali Bank to help extend maximum micro finance loans in Pakistan,” he said.

Earlier, he said the ADB had provided $150 million for the Khushhali Bank.

“Then we have decided to make available additional funding for Prime Minister Shaukat Aziz’s ‘one village one product’ modernization programme,” he said, adding that this funding would greatly help improve the lot of common man in rural areas.

Mr Shah said that for the first time, the ADB had taken a decision to support value addition programme for agricultural products.

He regretted that 940,000 tons of mangoes were produced in Pakistan, but hardly 10 per cent of them were marketed due to lack of value addition. The ADB, he said, would offer financial and technical support for value-addition in fruits.