ISLAMABAD, Aug 11: The Asian Development Bank (ADB) has asked Pakistan to create conducive climate for investment specially by improving its policy and regulatory framework.
“My Bank has decided to offer $2.6 billion during 2004-06 and it wants Pakistan to attract investment without which it would be difficult to create new job opportunities for alleviating poverty from the society,” said Mr. Marshuk Ali Shah, ADB Country Director for Pakistan.
Talking to Dawn here on Monday, he said that further reform in banking sector were also needed along with improving the policy and regulatory framework to lure substantial investment.
“Initially, the ADB will extend $200 million through its Infrastructure Development Fund to help build the required infrastructure for both the public and private sector,” he said.
He stressed the need for accelerating infrastructure activities in the power, roads, renewable energy and other related areas with a view to attracting both local and foreign investment.
A good part of the funding, the ADB local chief said, would also go into developing human resource, and strengthening education sector and non-formal education sector. “The main focus of $2.6 billion new assistance will be to ensure pro-poor intervention,” Mr. Shah said adding that the ADB experts would help the government to undertake the second generation reforms to increase GDP growth.
He pointed out that Pakistan’s new Country strategy Programme (CSP) had been endorsed by the ADB’s Board of Directors last week in Manila. Pakistan, he said, had qualified for donors’ assistance specially by making concerted efforts to implement an ambitious broad-based sectoral reform agenda. “These efforts, no doubt, has resulted in greater macroeconomic stability and policy reforms in key sectors.”
Mr. Shah said that there was also a need to deepen ongoing governance and macroeconomic reforms which would be generously supported by ADB funding. Then the gender reform, he pointed out, would be an integral part of the governance programme and the ADB’s strategy would focus on supporting political, administrative and fiscal initiatives to consolidate the reform process in Pakistan.
The local ADB chief said although fiscal performance of Pakistan has improved specially due to 5.1 per cent GDP growth registered in 2002-03, the overall poverty increased to 32.1 per cent in 2000-01 against 30.6 per cent in 1999-2000 specially in the rural areas.
In reply to a question, he said the provinces needed to concentrate on water conservation, drought mitigation and the rehabilitation of the irrigation structure.