EconomyPakistan

ADB Approves $658.8 Million for Pakistan’s Recovery and Development

The Asian Development Bank (ADB) has approved $658.8 million in financing to support Pakistan’s sustainable growth and help it recover from the last year’s cost-of-living crisis and super-floods. The financing approved for projects will focus on improving domestic resource mobilisation, rehabilitating schools damaged by the devastating August 2022 floods and enhancing agricultural productivity to improve food security.

The Manila-based financial institution, ADB, shared on Wednesday that the funds they’re providing are a key part of their strategic plan in Pakistan. They’re strategically using their lending programs and investments to strengthen Pakistan’s economy and improve the living conditions of its citizens.

The Improved Resource Mobilisation and Utilisation Reform Programme will support the government to realise its ambition of achieving economic growth that is sustainable, broad-based, and inclusive. The $300 million policy-based loan will support the initiative’s first subprogramme, which focuses on laying the foundation for reforms to policies, laws, and institutional capacity that will improve domestic resource mobilisation and utilisation.

The programme is helping to transform tax administration, public expenditure management, and other institutional structures to strengthen resource mobilisation including non-debt resources such as private investment and savings.

The Sindh Secondary Education Improvement Project, which is currently underway, will get more funds. This includes a $275 million emergency loan from ADB, which is part of their $1.5 billion commitment to help Pakistan recover from the severe floods in 2022. This extra money will be used to rebuild up to 1,600 schools that were damaged in the floods. The schools will be built with designs that can withstand disasters and climate changes, and also take into account gender needs.

This will boost resilience and inclusivity in the education system in Pakistan, helping recovery of learning and earning losses especially for girls in the most disadvantaged and vulnerable districts of Sindh. An $800,000 technical assistance grant will be provided to help plan and monitor the status of reconstruction in all flood-damaged schools and provide implementation support, including for introducing inclusive design features.

The Khyber Pakhtunkhwa Food Security Support Project will receive an $80 million loan at a reduced interest rate. This loan is part of the $1.5 billion that ADB has committed to help Pakistan recover from the floods in 2022. The money will be used to tackle issues related to climate change, improve food security, and enhance the living conditions of farming families in the rural areas of the province that were most affected by the floods.

The project will offer necessary farming resources and training to small-scale farmers, including women. This will help improve the nutrition in their households and empower women. Additionally, the project will increase access to digital resources, particularly for exploring market opportunities and getting information about the climate.

The bank will be managing a $3 million grant for the project. This grant comes from the Japan Fund for Prosperous and Resilient Asia and the Pacific. It will be used to fund activities for women farmers, such as cleaning seeds and safely using agricultural chemicals.

ADB Director General for Central and West Asia Yevgeniy Zhukov said, “This significant new wave of financing will help Pakistan recover from the impacts of last year’s cost-of-living crisis and super-floods and return to the path of long-term development that is sustainable and inclusive.”

He added, “This multifaceted approach is part of ADB’s strategic engagement in Pakistan and cohesively deploys our programme lending and project investments to enhance support for Pakistan’s efforts to improve its economic situation and enhance the quality of life for its people.”

Pakistan is one of the original members of the ADB. Since its establishment in 1966, the ADB has provided more than $52 billion in loans, grants, and other types of financial support to both the public and private sectors in Pakistan. This funding has been used to foster economic growth that benefits everyone in the country and to enhance Pakistan’s infrastructure, energy and food security, transportation systems, and social services.

ADB, established in 1966, is dedicated to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region. It continues to work towards eliminating extreme poverty. The organization is owned by 68 members, with 49 of them being from the region itself.

Back to top button