ISLAMABAD: Pakistan is set to receive foreign loans worth Rs785.57 billion for development projects in the upcoming fiscal year (2016-17), and donors are likely to give a grant of Rs21.42bn for the projects under Public Sector Development Programme (PSDP).

Apart from the federal government, bulk of foreign loans for development projects have been obtained by Punjab and Sindh, and they are expected to get Rs30bn and Rs29.39bn foreign loans for the next fiscal year, while Khyber Paktunkhwa (KP) and Balochistan are expected to get Rs4bn and Rs5.3bn loans from foreign donors.

However, the maximum amount in terms of foreign grant worth around Rs8.83bn will be received by the KP followed by Sindh at Rs7.62bn. Balochistan will get only Rs876.81 million in the next 2016-17.

Punjab is not getting any foreign grant in the next fiscal year while the highest amount of Rs20.84bn is likely to be obtained by Punjab from Asian Development Bank (ADB) for nine development projects.

Other donors include IDA (World Bank) and IBRD (World Bank) Rs6.22bn and Rs1.5bn, respectively, while an IFAD (UN body) will give loans to two projects, including the Livestock and Access to Market Project.

Among the Rs29.39bn foreign loan that Sindh is set to receive in the next fiscal year, key projects include Rs1.90bn for establishment of Children Hospital Sukkur, Rs11.74bn from the ADB for Sindh cities improvement programmes, Rs14.96bn from IDA for six nutrition and water-related projects and a road project with Rs780m loan from China.

For the KP, the bulk of lending at Rs2.55bn is set to be received from Japan for emergency road rehabilitation, Rs1.5bn from ADB for Peshawar Mass Transit facility.

Balochistan is expected to get Rs5.30bn foreign loans from ADB, IDA and Korea for mostly water-related projects. The province is likely to receive only Rs876.81m grants for its development projects, with bulk of support coming from Oman for various development projects, followed by support for nutrition programme by European donors.

The KP is set to receive Rs8.83bn in grants from US, Germany, EU, UNDP and Multiple Donors Trust Fund.

Grants amounting to Rs7.62bn are likely to be received by Sindh from Japan, US, IDA and MDTF.

Published in Dawn, June 4th, 2016