ISLAMABAD, July 30: Pakistan is desperately seeking $900 million from the Asian Development Bank by October this year to improve its fast depleting foreign exchange reserves.

Sources told Dawn that the bank, which had earlier disbursed $850 million, out of $1.9 billion lined up for calendar year 2008, has been requested to rescue the government by releasing preferably in one tranche the amount of $900 million by October this year. This funding is meant for improving energy sector and infrastructure development programme in the country.

The sources said that Islamabad told the bank that there had been $5.5 billion drawdown in reserves during the last few months due to higher oil and food imports that created lot of problems.

The sources said that Pakistan had been advised to achieve financial discipline to improve its deteriorating economy and qualifying for increased bank’s assistance in 2009.

The bank has also called for establishing more Independent Power Projects (IPPs) by the private sector to meet 7,000MW of electricity shortage. It asked the government to settle tariff-related issues to attract more IPPs in the country.

The government was told that the ADB had launched a new long-term 2020 strategy “refocusing” its operation in Asia and Pacific on three point development agenda that included growth, environmentally sustainable growth, and regional integration.

The strategy 2020 reshapes, redirects, and repositions ADB for a more innovative and effective development role in rapidly changing region and within the international aid architecture.

It sets ADB’s new strategic course, emphasising that poverty reduction can only be sustained if more people are economically productive, economic growth takes place in a well-managed natural environment, and neighbouring economies work within larger and freer markets to achieve shared interests through cooperation.

Pakistan was told that by 2012, 80 per cent lending will be in five core operational areas identified as ADB’s comparative strengths infrastructure, environment, regional cooperation and integration, finance sector development, and education.

By 2020, about 50 per cent of operations will be in private sector development and private sector operations, and 30 per cent in regional cooperation and integration.