Thursday, June 1, 2023

In three years, ADB will offer $5.4 billion in assistance to Pakistan

Over the next three years, the Asian Development Bank (ADB) will provide Pakistan with about $5.4 billion in assistance.

This is part of the five-year ADB Plan for Country Partnership (CPS).

“The indicative resources available for commitment during the primary three years of the CPS period (2021-2023) total $5.4bn,” said the ADB on Thursday. This include $3.6bn for normal OCR (ordinary capital resource) lending and $1.8bn for concessional OCR lending.

Pakistan is assessed as a gaggle B category developing member country with access to OCR lending and concessional OCR lending. The bank said additional grant resources had been allocated for a project in 2021 from the Asian Development Fund thematic pool worth $5 million to extend gender equity.

The final allocation for the entire 5-year CPS period will depend upon available resources, project readiness, and therefore the outcome of the country’s performance assessments. Sovereign operations are going to be supplemented with ADB’s non-sovereign operations, subject to headroom constraints, also as official and commercial co-financing.

The existing cost-sharing and financing parametres will still be applied during 2021-2025, with ADB financing up to 85 per cent of the loan project costs and 90pc for the TA costs, on an overall portfolio-wide basis. Actual shares for specific ADB projects are going to be determined by project-specific considerations and available co-financing.

The bank said it might place special emphasis on improving the standard of project readiness and implementation by engaging with the govt to possess project management units early. Only procurement-ready projects are going to be taken to the ADB board of directors for consideration of approval.

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