ADB to raise funding for Pakistan
The Asian Development Bank is to boost its funding for Pakistan over the next three years, a senior bank official announced here Thursday.
By Agencies |
ISLAMABAD: The Asian Development Bank is to boost its funding for Pakistan over the next three years, a senior bank official announced here Thursday.
"Financial support is expected to total at least six billion dollars for 2008-2010 in loans and grants, up from about 1.5 billion annually currently," said Juan Miranda, the bank's director general for Central West Asia.
Miranda, on a four-day visit to Pakistan, said that the bank is also revising its strategic priorities to focus on infrastructure, reforms, agri-business, non-banking services and urban and rural services.
The ADB is also looking to mobilize substantial co-financing from commercial banks, private equity groups and capital markets while at the same time ramping up its direct private sector investments.
The ADB agreed last month to provide a new 400 million dollars (297 million euros) loan for capital market reform in Pakistan.
"Pakistan is one of the fast growing economies in Asia by any account and ADB will do its best to ensure that growth continues as it is lifting scores of people out of poverty by creating new jobs," Miranda said.
Privatisation and investment minister Zahid Hamid, deputy finance minister and chairman of the USAID-funded Competitiveness Support Fund (CSF), Omar Ayub Khan, and a senior official of the board of investment, Mushtaq A. Malik, signed the memorandum.
"The board of investment and CSF will undertake joint initiatives under the MoU to support creation of a foreign investors’ council of Pakistan," a CSF statement said in Islamabad.
The CSF is a joint initiative of the Pakistani finance ministry and the US agency for international development.
"The support for CSF is part of the 1.5 billion dollars in aid that the US is providing to Pakistan through USAID over five years to improve economic growth, education, health and governance," the statement added.
"Financial support is expected to total at least six billion dollars for 2008-2010 in loans and grants, up from about 1.5 billion annually currently," said Juan Miranda, the bank's director general for Central West Asia.
Miranda, on a four-day visit to Pakistan, said that the bank is also revising its strategic priorities to focus on infrastructure, reforms, agri-business, non-banking services and urban and rural services.
The ADB is also looking to mobilize substantial co-financing from commercial banks, private equity groups and capital markets while at the same time ramping up its direct private sector investments.
The ADB agreed last month to provide a new 400 million dollars (297 million euros) loan for capital market reform in Pakistan.
"Pakistan is one of the fast growing economies in Asia by any account and ADB will do its best to ensure that growth continues as it is lifting scores of people out of poverty by creating new jobs," Miranda said.
ADVERTISEMENT
Meanwhile, Pakistani and US officials on Thursday signed a Memorandum of Understanding that will improve Pakistan's investment climate and enhance its economic competitiveness, a statement said. Privatisation and investment minister Zahid Hamid, deputy finance minister and chairman of the USAID-funded Competitiveness Support Fund (CSF), Omar Ayub Khan, and a senior official of the board of investment, Mushtaq A. Malik, signed the memorandum.
"The board of investment and CSF will undertake joint initiatives under the MoU to support creation of a foreign investors’ council of Pakistan," a CSF statement said in Islamabad.
The CSF is a joint initiative of the Pakistani finance ministry and the US agency for international development.
ADVERTISEMENT
It supports Pakistan's goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships with the country. "The support for CSF is part of the 1.5 billion dollars in aid that the US is providing to Pakistan through USAID over five years to improve economic growth, education, health and governance," the statement added.
ADVERTISEMENT
"The MoU is a landmark in terms of the international community's confidence in Pakistan's economic policies," privatisation minister Zahid Hamid said. Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
