MANILA, PHILIPPINES: The Asian Development Bank (ADB), this week, has given the green light to three projects amounting to $658.8 million, aimed at supporting Pakistan in its pursuit of inclusive and sustainable growth.
These initiatives will focus on boosting domestic resource mobilization, restoring schools affected by the destructive floods in August 2022, and elevating agricultural productivity to enhance food security.
ADB Director General for Central and West Asia Yevgeniy Zhukov said, “This significant new wave of financing will help Pakistan recover from the impacts of last year’s cost-of-living crisis and super-floods and return to the path of long-term development that is sustainable and inclusive.”
He added, “This multifaceted approach is part of ADB’s strategic engagement in Pakistan and cohesively deploys our program lending and project investments to enhance support for Pakistan’s efforts to improve its economic situation and enhance the quality of life for its people.”
The Reform Program for Improved Resource Mobilization and Utilization is set to assist the government in realizing its goal of sustainable, inclusive, and widespread economic growth. Through a $300 million policy-based loan, the program’s initial subprogram aims to establish the groundwork for policy, legal, and institutional reforms, enhancing domestic resource mobilization and utilization.
This initiative involves the transformation of tax administration, public expenditure management, and other institutional structures, bolstering resource mobilization through non-debt sources like private investment and savings.
Additionally, the ongoing Sindh Secondary Education Improvement Project will receive an extra $275 million emergency assistance loan to aid the recovery from the 2022 floods. This funding will contribute to rebuilding 1,600 flood-affected schools with resilient and gender-responsive designs, fostering inclusivity in the education system, particularly in Sindh’s most disadvantaged districts. A technical assistance grant of $800,000 will support planning, monitoring, and inclusive design features for the reconstruction.
Furthermore, the Khyber Pakhtunkhwa Food Security Support Project will benefit from a concessional loan of $80 million to address climate vulnerabilities, enhance food security, and uplift the livelihoods of rural farm households in flood-damaged districts.
The project includes providing agriculture inputs and training to smallholder farmers, particularly women, improving household nutrition, and expanding digital access to market opportunities and climate information. A $3 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific will specifically support activities for female farmers.
As a founding member of ADB since 1966, Pakistan has received over $52 billion in loans, grants, and financing to foster inclusive economic growth, improve infrastructure, and address energy and food security, transport networks, and social services. ADB remains committed to achieving a prosperous, inclusive, resilient, and sustainable Asia-Pacific region, focusing on eradicating extreme poverty.
