ISLAMABAD-With the inclusion of around $4.66 billion, Pakistan reached fourth number on the list of borrowing from Asian Development Bank (ADB) last year 2013.
The Asian Development Bank on Monday released Financial and Annual Reports 2013, which highlighted status of loans granted/programme approved by ADB for Pakistan last year. The financial report 2013 revealed that Pakistan took $4.66 billion from the ADB or 9.2 per cent of the bank’s overall lending during previous year, becoming fourth country in taking highest loan from the Asian Development Bank.
People’s Republic of China topped the borrowing list with $3.225 billion, followed by India with $11.249 billion and Indonesia $8.169 billion. Therefore, Pakistan has become fourth country with taking loan of $4.66 billion in 2013. Similarly, the report further stated that ADB approved $21.02 billion in financing operations last year, including $1.07 billion for Pakistan.
Pakistan’s overall loan under Asian Development Bank (ADB)’s Ordinary Capital Resources stood at $7.42 billion on December 31, 2013, which is 8.7 per cent of the bank’s overall programme under OCR. The ADB’s overall loan under Ordinary Capital Resources (OCR) was recorded at $85.22 billion on December 31 2013 wherein Pakistan’s share stood at $7.45 billion.
The break-up of $7.45 billion showed that loans outstanding are $4.94 billion, balances of effective loans $1.436 billion, loans not effective yet $1.037 billion, taking overall loan to $7.42 billion. According to the report, resources under Pakistan Earthquake Fund (PEF) totaled $147.2 million, of which $128.9 million had been utilized, leaving an uncommitted balance of $18.3 million ($4.4 million as of 31 December 2012). The PEF was established in November 2005 in response to the special needs of Pakistan following the earthquake on 8 October 2005
The ADB also noted that meeting energy needs remains a major concern for Asia, as ongoing electricity shortages in Pakistan demonstrate. The ADB has also highlighted its achievements in the report that included approval of an innovative $35 million partial credit guarantee facility to expand access to finance for rural dairy farmers in Pakistan. Under its Microfinance Risk Participation and Guarantee Programme, it approved 13 new microfinance institutions (MFIs)
The ADB approved a social protection development project in Pakistan to expand cash transfers to poor households, including those led by women, and developed a new Social Protection Index to help DMCs monitor their expenditure on social protection programs, and the programs’ impact. In Pakistan, ADB approved two electricity generation projects totaling $1.07 billion. These projects are Jamshoro Power Generation Project for $900 million and Power Distribution Enhancement Investment Program-Tranche 4 for $167.2 million.
In November 2013, ADB was appointed by state-owned entities to identify a commercial consortium leader to build, own, and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India natural gas pipeline in the four countries concerned. ADB’s support will include establishing the pipeline company, undertaking due diligence on the feasibility of the project, and managing the bidding for and selection of the consortium leader.
A $115 million renewable energy development sector investment program in Pakistan will increase the production and use of clean energy by installing four small and medium-sized hydropower stations in rivers or canals in Punjab and two hydropower stations in the province of Khyber Pakhtunkhwa.
Technical assistance approved in 2013 will help modernize border-crossing points in Pakistan in Chaman and Torkham, at the border with Afghanistan.