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Asian Development Bank approves $250 million loan for Pakistan

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2 years ago

ISLAMABAD: The Asian Development Bank (ADB) has approved a $250 million loan for Pakistan, here on Wednesday.

As per the details, the ADB has approved a $250 million policy-based loan to help Pakistan advance sustainable investment in infrastructure and services through public-private partnerships (PPPs).

ADB’s Promoting Sustainable Public-Private Partnership Program supports the implementation of government policies to create an enabling environment for financially viable PPPs and promote inclusive economic growth.

“This program is part of our comprehensive and integrated package of public sector management support that balances the country’s fiscal stability and growth objectives,” said ADB Director General for Central and West Asia Yevgeny Zhukov. “This program will help the Government of Pakistan create an environment conducive to strategic, financially viable PPPs that will bring the country closer to its development goals.”

ADB’s program supports reforms that improve the absorption capacity of PPP infrastructure investments by creating a more robust and coherent legal and institutional framework for public investment management and public financing for PPPs. will increase.

The program supports the implementation of the integrated PPP policy. These reforms will facilitate effective infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk screening and project feasibility assessment and gender considerations in PPP contracts.

“Mobilizing private finance through PPPs can help bridge the much-needed financing gap in public sector infrastructure projects,” said ADB Economist Sana Masood. “This program will help ensure that PPPs in Pakistan are properly structured and implemented effectively to deliver greater efficiency, innovation and value for money.”

A $700,000 technical assistance grant is funding program development and implementation. In December 2023, ADB approved an additional $950,000 for PPP pipeline identification, capacity building, and sector strategy development.

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