$300 million allocated for energy sector reforms and financial sustainability program
The federal government and the Asian Development Bank (ADB) on Wednesday inked six loans and grant agreements worth $1.535 billion to finance projects in the energy sector, urban sectors, social protection, transport, and water resources, according to a statement issued by the Ministry of Economic Affairs on Wednesday.
Secretary of the Economic Affairs Division Mian Asad Hayaud Din and ADB Country Director Yong Ye signed the loan and grant agreements. ADB Governor and Minister for Economic Affairs Omar Ayub Khan, ADB’s Vice President (Operations 1) Shixin Chen, and Director-General Yevgeniy Zhukov of Central and West Asia Department witnessed the signing ceremony.
Asian Development Bank’s Board of Directors has approved the projects the last week.
Breakdown of the agreements
According to the statement issued, the funds will be used to finance various projects:
- $300m policy-based loan will be used to support financial, technical and governance reforms in energy sector
- $385m have been allocated for urban infrastructure development in KPK’s five cities
- $235m will be used to dualise a 222-km Shikarpur-Rajanpur section of the Indus Highway
- $603m will be used to strengthen and expand Prime Minister’s Ehsaas program
ADB and Economic Affairs Division also agreed to collaborate on two project-readiness facilities including:
- A $5m loan for Kurram Tangi Integrated Water Resources Development Project
- A $15m loan for phase two of the KP Cities Improvement Investment Project
Economic affairs minister appreciated ADBs support
The economic affairs minister Omar Ayub Khan appreciated the Asian Development Bank and thanked its president, senior management and board of directors for their “continued and enhanced financial support towards reforming energy sector, improving road networks, enhancing social protection and developing sustainable cities in Pakistan”.
ADB Country Director Yong Ye said: “The financial support will strengthen Pakistan’s economy and reduce the risk of external economic shocks.”
ADB Vice President lauded Pakistan government
Speaking on the occasion, Vice President of ADB, Shixin Chen, lauded the Pakistan government’s continued progress in implementing widespread economic, fiscal and structural reforms, despite the challenging situation created by the Covid-19 pandemic.
He also appreciated the vaccination campaign carried out by the NCOC to curb the spread of the coronavirus. The bank had earlier this year approved a $500m loan for Pakistan to help it acquire Covid-19 vaccines.