Islamabad, 22 December 2021 (TDI): Economic Affairs Division (EAD), Government of Pakistan, and Asian Development Bank (ADB) signed six Financing Agreements amounting to US$ 1,543 Million. The signing ceremony was also attended by Pakistan’s Federal Minister for Economic Affairs, Omar Ayub Khan.
Financing Agreements
The Financing Agreements were signed by Mian Asad Hayaud Din, Secretary Economic Affairs Division, and Yong Ye, Country Director ADB today in Islamabad. The agreements include a US$ 385 million financing agreement to improve urban infrastructure in five cities of Khyber Pakhtunkhwa (KP) Province and a US$ 300 million policy-based loan to support financial, technical, and governance reforms to strengthen Pakistan’s energy sector.
In addition, they include a US$ 603 million results-based lending program to strengthen and expand the Ehsaas Program and a US$ 235 million project loan to dualize the 222-KM Shikarpur-Rajanpur Section of Indus Highway (N-55).
Two project readiness facilities for Khyber Pakhtunkhwa Cities Improvement Investment Project Phase-II (US$ 15 million) and preparing Kurram Tangi Integrated Water Resources Development Project (US$ 5 million) were signed as well.
Federal Minister Omar Ayub on Agreements
Federal Minister Omar Ayub Khan appreciated and thanked the President, Senior Management as well as the Board of Directors of ADB for their persistent and enriched financial aid for enhancing social protection, improving the energy sector, developing sustainable cities, and improving road networks in Pakistan.
Khyber Pakhtunkhwa Cities Improvement Project
Omar Ayub enunciated that Khyber Pakhtunkhwa Cities Improvement Project (US$ 385 million) will help provincial and city governments of KP Province by improving the livability of five cities; Mardan, Abbottabad, Mingora, Kohat, and Peshawar. The project will provide green infrastructure, water supply, solid waste management, and sewerage.
Moreover, it will also give institutional support for the improvement of the performance of municipal companies and service delivery with a special focus on facilitating gender-friendly municipal services via capacity development and empowerment.
The project will help approximately 3.5 million people in the aforementioned cities of KP. It will also support the development priorities of the government along with the Clean Green Pakistan vision of Prime Minister Imran Khan.
Shikarpur-Rajanpur Section of Indus Highway
The Federal Minister for Economic Affairs also accentuated that a 222-KM Shikarpur-Rajanpur Section of Indus Highway (N-55) will be dualized under the Central Asia Regional Economic Cooperation (CAREC) Corridor Development Investment Program Tranche-II.
Consequently, a four-lane carriageway will be made which will pass through Punjab and Sindh provinces on the western side of the Indus River. The road will traverse through Kandhkot, Kashmore, and Rojhan.
The dualization will not only increase local economic activities but also encourage intra/inter-regional trade along with the movement of people by reduced travel time and better connectivity.
Indus Highway is an international passageway that connects China, Afghanistan, and the neighboring Central Asian countries (CARs) to the Arabian Sea.
The section will also be furnished with rest areas, bus shelters, trauma centers as well as road safety facilities in order to ensure the safety and comfort of road users.
Integrated Social Protection Development Program
On the Integrated Social Protection Development Program, the Minister stated that it will reinforce the government’s efforts to implement the Ehsaas Program which includes poverty reduction schemes and social protection in line with the dream of Prime Minister of Pakistan, Imran Khan.
Kurram Tangi Integrated Water Resources Development Project
Whereas Kurram Tangi Integrated Water Resources Development Project is a foremost priority project in the erstwhile FATA. It includes hydropower generation and upgrading/construction of irrigation system covering 140,000 hectares and construction of a dam with water storage facility.
The project will not only help to create employment opportunities, increase agricultural production, and reduce rural poverty in the region, it will also enhance food security in Pakistan.
Omar Ayub reiterated the emphatic commitment of the Government of Pakistan to support all the Provinces, along with Gilgit-Baltistan and AJK to achieve sustainable development and inclusive growth.
Vice President of ADB on Agreements
The Vice President of ADB, Shixin Chen on the behalf of his organization lauded the performance of the Government of Pakistan in implementing comprehensive fiscal, economic, and structural reforms despite the tough situation caused by the COVID-19 pandemic.
Furthermore, he also praised the efforts of the Government of Pakistan to address socio-economic challenges as well as economic recovery amidst the pandemic. Shixin Chen appreciated the mass vaccination program for controlling the spread of COVID-19. ADB had also provided US$ 500 million to Pakistan for the vaccination program.
The Director-General of ADB, Eugene Zhukov affirmed that ADB will persist to support Government’s development priorities. He underscored that ADB is determined to support Pakistan for a sustainable, green, and resilient recovery.
Whilst Yong Ye, Country Director remarked that ADB financial support will boost Pakistan’s economy and lessen the risk of external economic shocks.
, Government of Pakistan, and Asian Development Bank (ADB) signed six Financing Agreements...(read more)){kind=link}