Pakistan secures nearly $659 million loan from ADB

• New wave of funding to help recovery from ‘cost of living crisis’.
• The multifaceted approach is part of ADB’s strategic commitment.
• The funding will help rebuild up to 1,600 schools damaged by the floods.

The Asian Development Bank (ADB) has approved $658.8 million in financing to support Pakistan’s sustainable development and help it recover from last year’s cost of living crisis.

According to a statement issued by the Manila-based lender on Wednesday, the financing approved for projects will focus on improving domestic resource mobilization, rehabilitating schools damaged by the devastating floods of August 2022 and boosting agricultural productivity. to improve food security.

“This major new wave of financing will help Pakistan recover from the effects of last year’s cost of living crisis and flash floods and return to a long-term growth path that is sustainable and inclusive,” said ADB’s Director-General for Central and West Asia Yevgeniy Zhukov.

“This multifaceted approach is part of ADB’s strategic engagement in Pakistan and coherently develops its lending program and project investments to strengthen support for Pakistan’s efforts to improve its economic situation and improve the quality of life of its people.”

The Enhanced Resource Mobilization and Utilization Program will support the government to realize its ambition to achieve economic growth that is sustainable, broad-based and inclusive.

The $300 million policy-based loan will support the initiative’s first sub-programme, which focuses on laying the foundations for policy, law and institutional capacity reforms that will improve domestic resource mobilization and utilization.

The program contributes to the transformation of tax administration, public expenditure management and other institutional structures to enhance resource mobilization, including non-debt resources such as private investment and savings.

The ongoing Sindh Secondary Education Improvement Project will receive additional funding — a $275 million emergency loan that is part of ADB’s pledge of $1.5 billion in support for Pakistan’s recovery from the devastating 2022 floods.

The additional funding will help rebuild up to 1,600 flood-damaged schools using disaster- and climate-resilient and gender-responsive designs. This will strengthen resilience and participation in the education system in Pakistan, helping to reverse learning and earnings losses especially for girls in the most disadvantaged and vulnerable areas of Sindh.

An $800,000 technical assistance grant will be provided to help plan and monitor the status of rebuilding at all flood-damaged schools and provide implementation support, including the introduction of inclusive design features.

An $80 million soft loan for the Khyber Pakhtunkhwa Food Security Support Program, which is also part of ADB’s pledge of $1.5 billion in support for Pakistan’s 2022 flood recovery, will help address the vulnerabilities of the climate, in strengthening food security and strengthening the livelihoods of rural areas. rural households in the most flood-affected areas of the province.

The project will provide basic agricultural inputs and training to smallholder farmers, including women, and improve household nutrition and women’s empowerment.

It will also enhance digital access and availability, particularly in terms of market opportunities and climate information.

The bank will administer a $3 million grant for the project from the Japan Fund for a Prosperous and Resilient Asia and the Pacific that will fund activities for women farmers related to seed cleaning and safer handling of agrochemicals.

Pakistan was a founding member of ADB. Since 1966, ADB has committed more than $52 billion in loans, grants and other forms of public and private sector financing to promote inclusive economic growth in Pakistan and improve the country’s infrastructure, energy and food security. transport networks and social services.

ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. Founded in 1966, it has 68 members — 49 from the region, read the statement.