Pakistan, ADB signs six financial agreements valued at over $ 1.54 billion

Pakistan, ADB signs six financial agreements valued at over $ 1.54 billion

ISLAMABAD: Pakistan and the Asian Development Bank (ADB) signed six financing agreements worth $ 1,543 million on Wednesday for reforms in the energy sector, social protection, urban infrastructure, road sector and water resources.

Economic Department Secretary Mian Asad Hayaud Din and ADB Country Director Yong Ye signed the agreements in Islamabad today. Economy Minister Omar Ayub Khan witnessed the signing of the $ 1.543 billion agreements between the Pakistani government and the ADB, it said in a statement.

According to the statement, the funding agreements include a policy-based loan of US $ 300 million to support financial, technical and government reforms aimed at strengthening Pakistan's energy sector; a $ 385 million funding agreement to improve urban infrastructure in five cities of Khyber Pakhtunkhwa; a US $ 235 million project loan to dualize a 222 km Shikarpur-Rajanpur section of the Indus Highway (N-55); and a $ 603 million results-based loan program to strengthen and expand the Ehsaas program.

Two project readiness facilities have also been signed in preparation for the Kurram Tangi Integrated Water Resource Development Project (the US $ 5 million) and the Khyber Pakhtunkhwa City Improvement Phase II investment project (the US $ 15 million).

Federal Minister of Economics Omar Ayub expressed his deep appreciation on this occasion and thanked the ADB for its continued and increased financial support in reforming the energy sector, improving the road network, improving social security and developing sustainable cities in Pakistan.

He said the KP Cities Improvement Project will help provincial and municipal governments improve the quality of life in five cities (Abbottabad, Kohat, Mardan, Mingora and Peshawar) by providing water, sewer, waste management and green infrastructure. The project will benefit up to 3.5 million people in these five provincial cities, he added.

The minister said the integrated social protection development program will support governments' efforts to implement the Ehsaas program, including social protection and poverty reduction programs in line with Prime Minister Imran Khan's vision.

ADB Vice President Shixin Chen said that despite a difficult situation caused by the COVID-19 pandemic, the Pakistani government has continued to make progress in implementing comprehensive economic, tax and structural reforms.

ADB country director Yong Ye said the ADB's financial assistance will strengthen the Pakistani economy and reduce the risk of external economic shocks.