ADB to provide Pakistan $1.2 billion for infrastructure development

MANILA/ISLAMABAD: The Asian Development Bank (ADB) has agreed to provide a $1.2 billion assistance package to Pakistan, the major chunk of which will be spent for improving power, transport, agriculture and urban service sectors, Radio Pakistan reported on Saturday.

According to the agreement, the bank in its new five year partnership strategy with Pakistan will provide the amount annually for infrastructure development and institutional reforms.

Apart from collaborating in rehabilitation of power transmission and distribution systems, construction and repair of highway, ADB. will also help rehabilitate the Indus Basin Irrigation System and invest in transport projects in urban centres of Sindh, Khyber Pakhtunkhwa and Punjab.

The assistance package will also expand the outreach of Benazir Income Support Programme, the poverty reduction initiative started by country's federal government back in 2008.

About 2.4 million women beneficiaries will be added to the programme with the help of this annual assistance package.

The incumbent PML-N government which inherited the Benazir Income Support Programme has already spent Rs40 billion on the BISP and enhanced allocation to Rs97bn.

Sources in the Finance Division back in April said that during the current fiscal year the government had designed the NISP and enhanced allocations to Rs118bn — Rs97bn for the BISP and Rs21bn for the Prime Minister’s Youth Programme (PMYP).

The Asian Development Bank will help establish a government owned disaster risk fund to mitigate risks and enhance resilience to natural disasters.

The bank claims to be one of Pakistan’s largest development partners, having provided more than $25 billion in loans, as well as more than $200 million in grants, as of Dec 31, 2014.

This funding has included 316 loans to improve Pakistan’s infrastructure and services, and to support reforms.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.

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Comments (36) Closed

Haris

Oct 17, 2015 12:39pm

Pakistan has taken loans of billions of dollars from ADP, WB, IMF but no progress can be seen on the ground. Agriculture yield per acre are the lowest in the world, schools and hospitals are in a pathetic state, rural roads are unusable and, corruption and mismanagement is rife. What use will new loans make?

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Nilesh

Oct 17, 2015 12:39pm

Is it a loan or assistance? If its loan that's against Islamic principles right?

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Cyrus

Oct 17, 2015 01:02pm

If Pakistan's economic plans fail it will be hard to pay off debt to the ADB, the World Bank and the IMF. Every citizen in Pakistan needs to get behind these economic development plans. As for the poor, they should be given micro loans and be encouraged to start their own home based small business. Establish a small Pakistan Micro Loan Bank, and fund it with a surtax on Pakistan's most wealthy individuals. The poor need to exercise their initiative, otherwise they won't feel part of the progress and will be left out of the loop.

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Manu

Oct 17, 2015 01:03pm

Hope money will be use by right person & right manner.

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Khwarezmi

Oct 17, 2015 01:07pm

Ohh not again! Previous governments including PML-N have been granted loans for developments which went into private ministers pockets. IMF and ADB must know this as no development has taken place. People are worse off today then just 5 or 10 years ago. This is high lever corruption in IMF, ADB and the Government in Islamabad.

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doremon

Oct 17, 2015 01:08pm

They have lined problems of whole Pakistan in just $1.2 billion!!!

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Iqbal

Oct 17, 2015 01:09pm

Pakistan needs to spend heavily on agriculture, industry, energy, communication infrastructure and transport, good governance especially police and judicial reforms, social sector like education and healthcare, urban and under developed areas development, revival of PIA, railways, WAPDA and steel mills. If continuous funding for ten years with sincere leadership is ensured, the fate of the country will be changed.

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Oct 17, 2015 01:10pm

another loan!!!

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A Shah

Oct 17, 2015 01:21pm

Oh great more loans.

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The Reluctant Fundamentalist

Oct 17, 2015 01:23pm

What are the terms and conditions of these loans that we have taken? Nothing comes free of strings, but what kind of strings are attached here? Why is being released so close to NS visit to USA?

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Raju

Oct 17, 2015 01:40pm

Good start develop the economy without wasting your time playing politics with your neighbours.

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sana-2

Oct 17, 2015 02:00pm

@Iqbal Then i guess 12 b $ will not be enough.

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A Z I

Oct 17, 2015 02:18pm

Expenses for programs, "improving power, transport, agriculture and urban service sectors" should be covered through annual budget, from our own resources. There does not seem any development project, for which this loan is sought. Loans should be taken for building dams, electricity projection or any other major project of national importance and not for "khao, tarkao aur chaley jao" and increase the national debt level to new height. An undesirable and avoidable loan.

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Munir

Oct 17, 2015 02:26pm

@Iqbal, Revival of PIA? Close it or privatise it. Airline is not an easy business for any government to manage. It is cyclical and extremely demanding which bureaucrats and politicians unfortunately cannot handle. In any case, governments shall create an enabling environment and not get into businesses to compete with nationals.

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Zaffar

Oct 17, 2015 02:52pm

Banks provide loans not financial assistances. If you fail to pay it back, they will start interfering and recover the money. So it is further addition on Pakistan's debts.

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Bhutto

Oct 17, 2015 02:54pm

This is called embezzling Loan!!! Who cares will be paid by the fools of this country.... and what a way to have corruption in Billions!! Is there is any check & accountability on these Loan???

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Karachitee

Oct 17, 2015 03:04pm

I wish any government could say we paid all previous loans and will not take further loan. For this one has the leadership qualities to take punches from everywhere.

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Prateek

Oct 17, 2015 03:07pm

Its a loan with interest. Hope this would be utilized efficiently.

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Sami

Oct 17, 2015 03:11pm

Borrowing borrowing and borrowing: roads roads and roads: corruption corruption corruption: poverty poverty poverty. Shame on government.

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berni

Oct 17, 2015 03:23pm

No details given. Useless piece.

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Human Soul

Oct 17, 2015 03:52pm

i wonder, Reliance company in India has made 1 bn $ profit in one quarter only.This is in Indian News

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Canada

Oct 17, 2015 05:44pm

I think PML is trying to bankrupt PK before fleeing. Wish PTI and IK would spend more time scrutinizing and investigating these "projects" rather complaining that they were cheated in elections all the same. I don't think there is much hope left for PK sadly.

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Pakistan

Oct 17, 2015 06:34pm

Does the ADB have a monitoring system? I doubt this.Money will go elsewhere and we know where.There appears to be some one from this party working there.

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tarik

Oct 17, 2015 07:19pm

No more loans. Priorities screwed up, another Nandi Pur, Agri. will go in to pockets of big land lords & highway will go in to the pockets of Sharifs. Where is education ?

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Arshad A Patel, West Chester, Ohio, USA

Oct 17, 2015 07:24pm

Why more loans ? Just the other day we heard our Prime Minister claiming to have saved Rs. 570/= Billion. LONG LIVE CORRUPTION AND MISMANAGEMENT. GOD BLESS PAKISTAN

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Gaurav Arya

Oct 17, 2015 08:09pm

Hope Pakistan realises that actual and real sovereignty is economic sovereignty.

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Jimmy Rocks

Oct 17, 2015 08:11pm

@Cyrus true. Bangladesh has Grameen bank and India has NABARD. Tjey hv done a terrific job.

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Oct 17, 2015 08:41pm

Sir, this big loan will go in the big pockets of Sharif brothers. They will not stop fooling us.

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ADNAN MAZHER KHAN

Oct 17, 2015 09:49pm

Please ask ADP to give it to Punjab as it would be used in Punjab only. Remaining provinces have finest rail, roads and train system. Punjab needs it most as investment in one province can win victory for ruling elites in next elections also. Let there be no confusion from onset.

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Ahmed

Oct 18, 2015 02:57am

Please do not provide any loan or aid to this Govt. They will gobble up the money. Make the infrastructure yourself.

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Asgher Ali

Oct 18, 2015 03:22am

I love it. How many politicians and how many federal, provincial, district government officers will become multi- millionaires before the first paisa will be spent on a project, assuming a few rupees are left after the above loot.

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kirther

Oct 18, 2015 04:00am

New procedure must be devised for distribution of resources among four provinces and in province of Sind quota for Sind Rural and Sind Urban must be abolished.

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Mustafa

Oct 18, 2015 04:20am

The eventual goal of all Western institutions is to support the corruption establishment.

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citizen

Oct 18, 2015 07:32am

My worry is that the major chunk of this loan will go to improve the power sector or to the banks of powerful politicians...Is there any monetary institute where we have not taken loan in this planet?

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asad LATEEF

Oct 18, 2015 08:19am

@Khwarezmi just relax

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Justice

Oct 18, 2015 08:20am

All these world originzation( ADP, WB, IMF) who have been giving loans to Pakistan should put condition for an annaul audit by these orginization and demand progress report. Everone knows that corrupt leaders of Pakistani govenment can not be trusted.

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