Pakistan is going through the toughest economic times in its history as the rupee has lost more than 30 per cent of its value in the last year, inflation has crossed 13 per cent, and the trade deficit has surpassed $39bn in the first ten months of the current financial year (DAWN,2022).
Furthermore, the State Bank’s foreign exchange reserves have decreased to around $10bn (DAWN,2022). These steep economic challenges have an adverse trickle-down effect on the economic growth of Pakistan. During this critical phase, the Asian Development Bank (ADB) is committed to supporting Pakistan in ensuring macroeconomic stability and fiscal consolidation.
Pakistan has been one of the founding members of ADB since its inception in 1966. Since then, ADB has helped the country reduce poverty and improve the country’s prosperity and resilience by enhancing infrastructure, urban services, energy, food security, transport networks, the private sector, and social services.
Under the country partnership strategy 2021–2025, ADB will support Pakistan’s development priorities by focusing on improving economic management, building resilience, and boosting competitiveness and private sector development. It will also support the country’s preparation for digital transformation through policy improvements, public institution strengthening, and relevant infrastructure investments.
Recently, the Asian Development Bank (ADB) announced plans to fund projects worth $2 billion in Karachi and Lahore. These projects will be related to food security, health, irrigation, and education which will play a pivotal role in the economic development of Pakistan. ADB’s role in the economic development of Pakistan has been commendable as the bank has committed over $37bn to promote inclusive economic growth and improve the country’s infrastructure, energy, food security, transport networks, social services, etc.
Furthermore, ADB is supporting the Pharma sector of Pakistan to make it self-sufficient. It will transfer modern technology to the concerned sector and promote mechanised farming and solar energy in Pakistan.
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