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ADB restoring budgetary support
The Asian Development Bank (ADB) on Tuesday announced that it would restore the budgetary support for Pakistan and expressed satisfaction over the performance of government regarding economic reforms. This was stated by Dr Warner E. Liepach, ADB''s country Director to Pakistan, at a press conference here in Islamabad.
The Bank also announced that its three-year Business Plan for Pakistan would come in the next few days under which it would disburse $3.2 billion from 2014-16. Of which, about a 1/3rd will be for budget support while a 2/3rd for project lending. The Bank has disbursed about $470 million in the current calendar year. He further said that the Bank would disburse $2 billion to Pakistan during the current fiscal year.
Dr Warner said that country''s economy was on track and the financial support had been scaled up for Pakistan. He further said that the Bank supported government reforms and the Vision 2025. Disbursement would be in recognition of government''s economic reforms.
Regarding Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Warner said that since the appointment of ADB as transaction advisor on the project, several big companies had shown interest in the project. "Though we would not finance the project; however, we will arrange finance for it," said Warner, adding that it was expected gas supply from the project would be started by 2018. Warner further said that the bank would not finance Iran-Pakistan (IP) project as Iran is not a member of ADB.
According to him, currently about 25 projects are in the pipeline which include infrastructure, irrigation and energy sector projects. There are more than 20 projects for which Bank''s funding is on-going. Replying to a question, Warner said Diamir Bhasha dam was still under consideration, however, the Bank could not provide more than $1.5 billion for the project; "it is linked with financial support and reforms." He further said that study report of the project would be completed in the next eight months.
To another question, Warner said that in addition to IMF conditions, Pakistan would be required to address ADB''s concerns on budget support. He further said that there were operational, technical, governance and financial issues including circular debt. The root cause of the circular debt needed to be addressed, while the cost should be brought down.
Regarding subsidies by the government; he said that it should be targeted. "The economy kept up in the first quarter due to good power supply. There has been agreement with IMF for the privatization of some units and the agreement should be honoured," he said and added that privatisation should be made with a formal planning.
He further said that the Bank had approved a loan of $167.2 million for eight distribution companies in Pakistan to improve the power distribution system, adding ADB had also decided to provide $900 million loan for a new supercritical coal power generation unit in Pakistan that would deliver reliable, cost effective electricity to hundreds of thousands of energy-starved households and businesses. "ADB has approved a $430 million equivalent loan to expand and strengthen Pakistan''s national social safety net program, Benazir Income Support Programme (BISP), which is helping to lift millions of families out of poverty," said Warner adding that Bank is also working to finance E-35.
ADB restoring budgetary support | Business Recorder
The Asian Development Bank (ADB) on Tuesday announced that it would restore the budgetary support for Pakistan and expressed satisfaction over the performance of government regarding economic reforms. This was stated by Dr Warner E. Liepach, ADB''s country Director to Pakistan, at a press conference here in Islamabad.
The Bank also announced that its three-year Business Plan for Pakistan would come in the next few days under which it would disburse $3.2 billion from 2014-16. Of which, about a 1/3rd will be for budget support while a 2/3rd for project lending. The Bank has disbursed about $470 million in the current calendar year. He further said that the Bank would disburse $2 billion to Pakistan during the current fiscal year.
Dr Warner said that country''s economy was on track and the financial support had been scaled up for Pakistan. He further said that the Bank supported government reforms and the Vision 2025. Disbursement would be in recognition of government''s economic reforms.
Regarding Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Warner said that since the appointment of ADB as transaction advisor on the project, several big companies had shown interest in the project. "Though we would not finance the project; however, we will arrange finance for it," said Warner, adding that it was expected gas supply from the project would be started by 2018. Warner further said that the bank would not finance Iran-Pakistan (IP) project as Iran is not a member of ADB.
According to him, currently about 25 projects are in the pipeline which include infrastructure, irrigation and energy sector projects. There are more than 20 projects for which Bank''s funding is on-going. Replying to a question, Warner said Diamir Bhasha dam was still under consideration, however, the Bank could not provide more than $1.5 billion for the project; "it is linked with financial support and reforms." He further said that study report of the project would be completed in the next eight months.
To another question, Warner said that in addition to IMF conditions, Pakistan would be required to address ADB''s concerns on budget support. He further said that there were operational, technical, governance and financial issues including circular debt. The root cause of the circular debt needed to be addressed, while the cost should be brought down.
Regarding subsidies by the government; he said that it should be targeted. "The economy kept up in the first quarter due to good power supply. There has been agreement with IMF for the privatization of some units and the agreement should be honoured," he said and added that privatisation should be made with a formal planning.
He further said that the Bank had approved a loan of $167.2 million for eight distribution companies in Pakistan to improve the power distribution system, adding ADB had also decided to provide $900 million loan for a new supercritical coal power generation unit in Pakistan that would deliver reliable, cost effective electricity to hundreds of thousands of energy-starved households and businesses. "ADB has approved a $430 million equivalent loan to expand and strengthen Pakistan''s national social safety net program, Benazir Income Support Programme (BISP), which is helping to lift millions of families out of poverty," said Warner adding that Bank is also working to finance E-35.
ADB restoring budgetary support | Business Recorder
