The Asian Development Bank (ADB) has signed six agreements worth $1.5 billion to finance various development projects in Pakistan. The development projects are related to the energy sector, urban infrastructure, social protection, roads, and water resources programmes. The loan will also provide institutional support to municipal corporations in various cities and will also focus on gender-friendly services.
These agreements include a policy-based loan of $300 million to support financial, technical and governance reforms to strengthen the country’s energy sector along with $603 million to expand the Ehsaas programme. The urban infrastructure projects include the dualisation of the Indus Highway and Khyber Pakhtunkhwa city improvement program, providing water supply, sewerage, solid waste management, and green infrastructure. These projects will help to improve the livability of cities and will boost economic and regional trade activities. Furthermore, the water resource program includes the construction of dams, hydropower generation, construction and upgrading of irrigation systems to increase agricultural productivity and improve the country’s food security situation.
ADB is aligned with Pakistan’s development vision that aims to promote inclusive economic growth and improve the country’s infrastructure, energy and food security, transport networks, and social services. During the pandemic, ADB had also provided a loan of $700 million to Pakistan to help it procure Covid-19 vaccines. The Development Bank has committed to promoting the country’s structural reforms and supporting Pakistan for green, resilient, and sustainable recovery. The financial support will strengthen Pakistan’s economy and reduce the risk of external economic shocks.
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