ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Friday signed an agreement worth $250 million policy-based loan.
Secretary Ministry of Economic Affairs Dr Kazim Niaz and Country Director ADB Yong Ye signed the loan program.
Kazim Niaz thanked the ADB for its continued support to Pakistan’s critical development needs and rehabilitation efforts in post-flood context.
According to the ADB official ‘X’ handle, the agreement aimed at assisting Pakistan drive sustainable investment in infrastructure and services through Public Private Partnership (PPP).
ADB Country Director for Pakistan Yong Ye and Secretary EAD Dr Kazim Niaz signed the agreement.
“ADB Country Director for Pakistan Yong Ye and Secretary EAD Kazim Niaz today signed the agreement for $250 million policy-based loan to assist Pakistan drive sustainable investments in infrastructure and services through public–private partnerships (PPPs)”, ADB said.
According to press release, the program supports implementation of an integrated PPP (Public–Private Partnerships) policy. The reforms will facilitate efficient infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk screening and gender considerations in project feasibility assessments and PPP contracts.
“Mobilizing private finance through PPPs can help to bridge the financing gap in public sector infrastructure projects—which is vital,” said ADB Economist Sana Masood, adding the program would help ensure PPPs in Pakistan were structured correctly and implemented effectively in order to deliver more efficiency, innovation, and value for money.
A $700,000 technical assistance grant is financing the program’s preparation and implementation. In December 2023, an additional $950,000 was approved by ADB to support PPP pipeline identification, capacity building, and sector strategy development.
Pakistan was a founding member of ADB. Since 1966, the Bank has committed over $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth in Pakistan and improve the country’s infrastructure, energy and food security, transport networks, and social services.
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