ISLAMABAD: As a consequence of Indian objections to financing Diamer Bhasha Dam, the Asian Development Bank (ADB) is dragging its feet over providing multimillion dollars loans to construct this much-delayed hydropower project with an estimated cost of over $12 billion, it is learnt.
Instead of providing direct access to financing for Basha dam, the ADB has offered Pakistan to get programme loans for budgetary support and then divert them towards its choice project even for Basha dam, but Finance Minister Ishaq Dar has flatly refused to adopt this path by arguing that Pakistan is a sovereign state and possesses the right to get financing for any project as a member state of the ADB. “We will take up this issue during the upcoming visit of President ADB who is scheduled to visit Pakistan from September 15 to 17,” top economic managers confided to The News here on Sunday.
Finance Minister Ishaq Dar who attended the ADB’s 47th Annual meeting held at Astana, Kazakhstan, sternly opposed the move of the Manila based institution to drag its feet from commitment for providing financing to construct Basha dam as Indian delegates had extended opposition in the Bank’s board meeting on the pretext that Pakistan was constructing this dam in the disputed territory of the Northern Areas of the country
At that point of time, the ADB high-ups requested the Finance Minister not to take up this issue at an official level as they promised to resolve it in an amicable manner. After detailed deliberations, the ADB offered Islamabad to get the increased amount in the shape of programme loans and then divert the available money to the project of its choice in order to resolve the controversy. “Pakistan has refused to get programme loans in the guise and then finance the Basha dam,” said the official and argued that it was right of a sovereign state to get financing for its pet projects and Pakistan will not surrender its right.
Now the ADB’s President will be visiting Pakistan from September 15 to 17 as he will stay here for 48 hours so Islamabad’s economic managers will again take up this issue to make it crystal clear that Pakistan will not abandon its genuine stance that the ADB should continue playing its role as lead manager for consortium to arrange financing for Basha dam and contribute a major chunk in the required resources to build this project.
The World Bank was already in no mood to finance Basha dam in a major way as they had approved the loan for Dasu dam. On other hand, Finance Minister Ishaq Dar had arranged a donors’ conference in Washington D.C by next month on the sidelines of annual spring meeting of IMF/World Bank to arrange financing for Basha dam. The government has made it clear that it was intended to construct Basha and Dasu simultaneously.
The ADB has committed to provide $3 billion loans to Islamabad within three year period starting from ongoing fiscal year 2014-15. In every fiscal year, Pakistan is expected to receive $1 billion from the ADB. However, India will be getting $7 to $9 billion in these three years.
India creating hurdles in ADB loan for Bhasha Dam - thenews.com.pk
As last resort i like ADB idea of getting loan and diverting it to Bhasha dam. Why Pakistan is opposing this? @Chak Bamu
Instead of providing direct access to financing for Basha dam, the ADB has offered Pakistan to get programme loans for budgetary support and then divert them towards its choice project even for Basha dam, but Finance Minister Ishaq Dar has flatly refused to adopt this path by arguing that Pakistan is a sovereign state and possesses the right to get financing for any project as a member state of the ADB. “We will take up this issue during the upcoming visit of President ADB who is scheduled to visit Pakistan from September 15 to 17,” top economic managers confided to The News here on Sunday.
Finance Minister Ishaq Dar who attended the ADB’s 47th Annual meeting held at Astana, Kazakhstan, sternly opposed the move of the Manila based institution to drag its feet from commitment for providing financing to construct Basha dam as Indian delegates had extended opposition in the Bank’s board meeting on the pretext that Pakistan was constructing this dam in the disputed territory of the Northern Areas of the country
At that point of time, the ADB high-ups requested the Finance Minister not to take up this issue at an official level as they promised to resolve it in an amicable manner. After detailed deliberations, the ADB offered Islamabad to get the increased amount in the shape of programme loans and then divert the available money to the project of its choice in order to resolve the controversy. “Pakistan has refused to get programme loans in the guise and then finance the Basha dam,” said the official and argued that it was right of a sovereign state to get financing for its pet projects and Pakistan will not surrender its right.
Now the ADB’s President will be visiting Pakistan from September 15 to 17 as he will stay here for 48 hours so Islamabad’s economic managers will again take up this issue to make it crystal clear that Pakistan will not abandon its genuine stance that the ADB should continue playing its role as lead manager for consortium to arrange financing for Basha dam and contribute a major chunk in the required resources to build this project.
The World Bank was already in no mood to finance Basha dam in a major way as they had approved the loan for Dasu dam. On other hand, Finance Minister Ishaq Dar had arranged a donors’ conference in Washington D.C by next month on the sidelines of annual spring meeting of IMF/World Bank to arrange financing for Basha dam. The government has made it clear that it was intended to construct Basha and Dasu simultaneously.
The ADB has committed to provide $3 billion loans to Islamabad within three year period starting from ongoing fiscal year 2014-15. In every fiscal year, Pakistan is expected to receive $1 billion from the ADB. However, India will be getting $7 to $9 billion in these three years.
India creating hurdles in ADB loan for Bhasha Dam - thenews.com.pk
As last resort i like ADB idea of getting loan and diverting it to Bhasha dam. Why Pakistan is opposing this? @Chak Bamu
