October 29, 2007	Monday	Shawwal 16, 1428

ISLAMABAD, Oct 28: Pakistan emerged as the largest recipient of Asian Development Bank loans in the central and West Asian region last year.

The ADB approved 23 loans for central and West Asia totalling $1.9 billion. Of this, 80 per cent amounting to $1.5 billion for 13 programmes, were approved for Pakistan, an ADB report says.

Six loans were approved under the multi-billion dollar tranche financing facility that provides long-term support in transport and communication, energy security and irrigation services. ADB’s total portfolio consists of 80 loans totalling $6.4 billion.

Some of the major programmes included a renewable energy sector development programme through a $510 million multi-tranche financing facility to fund new investments in small to medium-sized hydropower units, besides an $800 million power transmission enhancement project to ensure reliable and high-quality power supply to an ever increasing number of industrial, commercial and domestic consumers.

Pakistan used to be in South Asia but has now been included in ADB’s central and west Asian region that originally included countries from the Caucasus to Central Asia. Total lending to the sub-region amounted to $1.6 billion from ADB’s ordinary capital resources (OCR) and $275 million in Asian Development Fund (ADF) loans. The ADF grants in 2006 totalled $1.06 million.

The bank said its contract awards topped $1.2 billion and disbursements reached $1 billion in 2006. Pakistan accounts for 85 per cent of the bank’s central and west Asia department’s total contract awards and 79 per cent of disbursements.

Uzbekistan was the second highest recipient of the ADB loan in 2006 with $49 million, followed by Afghanistan with $44.35 million. Azerbaijan, Kazakhstan, Kyrgyzstan and Tajikistan are other recipients.

The bank’s regional classification is on the basis that these countries lie at the heart of an increasingly integrated Eurasian continent. “Surrounded by opportunity, the area is growing rapidly. Its countries are also examining how best to work together to turn potential into shared and sustainable economic prosperity,” the bank says.

It says the areas’ strong economic growth comes amid efforts to develop the private sector, further the transition towards a market system and deal with conflict. “A large percentage of the population in many countries also continues to live on less than $2 a day”.

The ADB loans to the region covers financial market development, energy security, connectivity, urban services improvement and agriculture productivity.