Once the International Monetary Fund (IMF) Extended Fund Facility (EFF) programme is restored, the Asian Development Bank (ADB) will disburse over $1.5 billion to Pakistan in the current fiscal year to help with the balance of payments.
According to official sources, the government requested the bank in June 2022 to expedite the approval process and subsequent disbursement of approximately $2 billion to support the balance of payment.
The issue was also raised in a meeting of the Asian Development Bank’s Country Director, Yong Ye, with the Federal Minister of Economic Affairs, Sardar Ayaz Sadiq. Sadiq informed the ADB that the Counter-Cyclical Facility is urgently needed due to rising commodity and energy prices around the world.
According to sources, ADB has hinted at releasing funds to Pakistan before the end of the year.
ADB has a current portfolio of around $8.5 billion and 40 ongoing projects, according to our sources. Concerns were raised during the meeting about slow-moving projects such as the Karachi Bus Rapid Transit (BRT) and Public-Private Partnerships in Punjab. Both parties agreed to hold a detailed meeting in the next ten days to review all projects, with a special focus on slow-moving projects.
The Minister for Economic Affairs welcomed the ADB delegation to Pakistan, led by Country Director Yong Ye, Deputy Country Director Asad Aleem, and Senior Project Officer Shaukat Shafi, to discuss the ongoing ADB portfolio in Pakistan. The meeting covered topics of mutual interest.
The Minister for Economic Affairs praised ADB’s long-standing and trusted partnership dating back to 1966, as well as its generous and timely support of more than $25 billion for priority areas such as economic reforms, energy, roads and transportation, agriculture and water, and the social sector.
The ADB Country Director briefed the Minister on ADB’s assistance to Pakistan prior to and after COVID.
ADB provided assistance to Pakistan in the areas of energy, transportation, agriculture, and natural resources; fiscal policy formulation; domestic resource mobilisation; public financial and debt management; public-private partnerships; SME development; financial and capital markets; housing and green finance.
The Minister praised the efforts and emphasised the country’s current flood situation, emphasising the need for collaboration to strengthen flood resilience.
The Minister of Economic Affairs praised the ADB’s assistance in the country’s economic stabilisation during the pandemic’s testing times.
The Minister thanked the ADB Country Director for his visit to the Ministry. The ADB Country Director also assured the meeting of the bank’s continued support for the priority government sectors highlighted.
