AfDB for continued fiscal consolidation and policy reform efforts – Latest News – The Nation
ISLAMABAD – The Asian Development Bank (AfDB) noted that continued fiscal consolidation and policy reform efforts will be essential to support improvements in macroeconomic stability, in particular by broadening the tax base and improving the environment Business.
“Reforms are needed to promote high value-added exports, increase social spending, strengthen the financial and technical sustainability of the energy sector, and implement structural changes that will strengthen institutions and create jobs,” said AfDB in its latest report, ‘Asian Development Bank and Pakistan: Fact Sheet’. The AfDB said it had committed 723 public sector loans, grants and technical assistance totaling $37 billion to Pakistan. Cumulative loan and grant disbursements to Pakistan so far stand at $28.27 billion. These were financed through ordinary and concessional ordinary capital resources, the Asian Development Fund and other special funds. AfDB’s ongoing sovereign portfolio in Pakistan comprises 48 loans and 3 grants worth $8.42 billion.
In 2021, AfDB loan and grant disbursements in Pakistan amounted to $1.31 billion, including $0.3 billion in program loans and $1.01 billion in project loans and 3 million dollars in donations. AfDB support for Pakistan’s coronavirus disease (COVID-19) pandemic response in 2021 included a $500 million loan in August to help procure and deploy a safe and effective vaccine, and a loan of $603 million, including $3 million from ADF, for an integrated social protection program to strengthen Pakistan’s flagship Ehsaas program. The loan is complemented by a $24 million grant from the Education Above All Foundation.
The total outstanding balances and undisbursed commitments of AfDB non-sovereign transactions in Pakistan as of December 31, 2021 was $441.31 million, or 3.14% of the AfDB’s total private sector portfolio. The program builds on a previous loan of $500 million under the AfDB’s COVID-19 Active Response and Expenditure Support Program and a $300 million emergency assistance loan to strengthen Pakistan’s public health response to protect the poorest families from the pandemic. The AfDB has committed $300 million for the construction of the Balakot Hydroelectric Power Station on the Kunhar River near the town of Balakot in Khyber Pakhtunkhwa. By 2027, the plant will add 1,143 gigawatt hours of clean energy per year to the country’s energy mix, improving the reliability and sustainability of the energy sector.
Another $300 million policy-based loan has been committed to support reforms aimed at strengthening Pakistan’s energy sector and improving its financial sustainability. The program will help to reduce and manage the cash deficit accumulated throughout the electricity supply chain, known as circular debt. The AfDB continued to strengthen Pakistan’s financial sector, develop competitive capital markets and encourage private sector investment.
The AfDB has committed a $235 million loan to further upgrade the 222 kilometer Shikarpur-Rajanpur section of National Highway 55 from two lanes to a four-lane carriageway, linking the ports of Karachi and Gwadar in southern Pakistan , national and international economic centers. North. The AfDB has committed a $385 million loan to improve livability and community health in Khyber Pakhtunkhwa cities including Abbottabad, Kohat, Mardan, Mingora and Peshawar, benefiting more than 3.5 million people.