“We will be offered these funds on a concessional two per cent interest rate and 15 years repayment period with additional grace period of five years,” said Finance Minister Shaukat Aziz.
Speaking at a news conference here on Tuesday, he said that six agreements had been signed with the Abu Dhabi Fund for Development for co-financing six development projects.
Giving details, he said he had held detailed talks with a visiting UAE delegation led by Information Minister Sheikh Abdullah bin Zaid al-Nehayan and Managing Director of Abu Dhabi Fund for Development Saeed Khalfan M. al-Romaithi.
The purpose of talks, he said, was to manage resources for some of the mega development projects announced by President Gen Pervez Musharraf on Aug 14. “And I am happy to announce that necessary funds have been arranged from the UAE for six projects.”
He said that out of $265 million, $50 million would be spent on Gomal Zam dam, $40 million on Greater Karachi Water Supply Scheme, $55 million on Daber Khwar hydro power project, $40 million on Khan Hydro power project, $60 million on Alai hydro power project and $20 million on Water Supply Scheme for Quetta.
“We have managed funds for initiating the first phase of these projects and we will be further negotiating to seek more funds for these projects,” the minister said.
Mr Aziz said that negotiations with various bilateral and multilateral donors were currently being held to get financial support following the lifting of international sanctions against Pakistan.
“We are seeking new aid. We are seeking export credit and export insurance, market access and extensive debt relief,” he said, adding that a greater economic package for Pakistan was likely to be finalized in the second week of December at Paris.