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Wednesday, December 18, 2013
ADB to disburse $3.2bn to Pakistan from 2014 to 16*Bank would provide $2 billion to Pakistan during the current fiscal year
Staff ReportISLAMABAD: The Asian Development Bank (ADB) on Tuesday announced restoration of Budgetary Support for Pakistan from March 2014 along with Three Years Business Plan for the country under which it would disburse $3.2 billion from 2014-16.
ADB’s Country Director to Pakistan Dr Warner E Liepach made this announcement while addressing a press conference on Tuesday. The Bank announced its three years Business Plan for Pakistan under which it would disburse $3.2 billion from 2014-16. Of which about one-third will be for budget support while two-thirds for project lending. ADB has disbursed about $470 million in the current calendar year. Liepach further said that the Bank would disburse $2 billion to Pakistan during the current fiscal year.
He said that economy is on track and the financial support for Pakistan has been scaled up. He said ADB supports the government reforms and vision 2025 and disbursement would be in recognition of its economic reforms. He said that currently about 25 projects for the country are in pipeline, which included those related to infrastructure, irrigation and energy. More than 20 projects are being funded by the Bank.
Replying to a question, Liepach said that Diamer Bhasha Dam is still under consideration, however the Bank could not provide more than $1.5 billion for the project, which are linked with financial support and reforms. He further said that study report of the project would be completed in the next eight months. The ABD official said that there are operational and technical, governance and financial issues, including circular debt. The root cause of the circular debt needs to address while the cost should be brought down, he said, adding that the government has introduced some reforms; however these have been challenged in the Supreme Court.
Regarding subsides by the government; the ADB country director said that they should be targeted. “The economy is kept up in the first quarter due to good power supply. There has been agreement with IMF for the privatisation of some units and the agreement should be honoured,” he stated. Liepach said that privatisation should be done with a formal planning. ADB, he said, has approved a loan of $167.2 million for eight distribution companies in Pakistan to improve the power distribution system and to help provide reliable, regular electricity to businesses and domestic consumers.
The Bank has also approved $900 million loan for a new supercritical coal power generation unit in Pakistan that will deliver reliable, cost-effective electricity to hundreds of thousands of energy-starved households and businesses. The ADB has approved a $430 million equivalent loan to expand and strengthen national social safety net programme Benazir Income Support Programme (BISP), which is helping lift millions of families out of poverty, said Liepach.
Courtesy www.dailytimes.com.pk