ISLAMABAD, Aug 25: The Asian Development Bank (ADB) has decided to offer Pakistan $3.2 billion during 2005-07 to help improve the country’s infrastructure and alleviate poverty.
Official sources told Dawn on Thursday that the ADB has asked the government to furnish the details of new development projects to be supported under the ADB’s three-year Country Strategy Programme (CSP).
The ADB has expressed its willingness to provide all the necessary financial and technical assistance to drastically improve the country’s poor economic indicators.
The sources said that Pakistan was also seeking ADB’s assistance for undertaking mega water projects, including dams and reservoirs, to meet the water and power shortages.
The ADB was told that Pakistan was interested in seeking adequate international financing for the Kalabagh dam and Bahshah dam.
Earlier, the ADB had finalised its $1.2 billion financial assistance for 2006 which also included $200 million for a mega uplift improvement programme in Karachi.
“The ADB has agreed to provide a $3.2billion three-year funding programme for Pakistan which means $1.2million assistance every year starting from calendar year 2006,” said a source.
The ADB was extending $800 million for 2005 which would now be stretched to $1.2 billion every year from 2006 to help undertake bigger mega development projects in Pakistan.
The source said over $300 million will be provided for a sub-regional connectivity project to link Pakistan with the Central Asian States, and added that this assistance was part of Pakistan’s infrastructure development programme to promote effective trade relations with Central Asia through Afghanistan.
Last year, the ADB had extended $180 million for the sub-regional connectivity project in addition to $302 million provided for improvement of roads in the North West Frontier Province and inside Afghanistan.
The source said that $300 million would be extended for providing a link between the Gwadar port and Port Qasim as well as the Karachi port. This is considered one of the ADB’s major achievements to further help develop ports in Pakistan.
The ADB will also disburse a handsome amount for improving rural health, water supply schemes and roads.
The source said $200 million will be offered for the second phase of resource management programme for Punjab in 2006. Earlier, $150 million were extended for the first phase of the programme.
Also, $42 million in soft loans will be offered for four agencies of the Federally Administrated Tribal Areas (FATA) to help strengthen tribal infrastructure. FATA assistance will also be used for building a small dam.
