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ADB assistance could double to $9bn

* ADB vice president meets Gilani, agrees to finance Basha dam project

By Sajid Chaudhry

ISLAMABAD: The economic assistance from the Asian Development Bank (ADB) under its Country Partnership Strategy (CPS) 2009-13 may be hiked to $9 billion from the existing proposition of $4.5 billion.

The ADB has offered Islamabad to double the annual economic assistance to $3 billion from the proposed $1.5 billion to help Pakistan improve its infrastructure and overcome its economic challenges. "The ADB can double its annual assistance for Pakistan for the next three years, provided that the funding availability of the bank is increased," visiting ADB Vice President Xiaoyu Zhao told reporters on Thursday. "We can double Pakistan's assistance up to $3 billion per annum provided Islamabad makes a request in this regard as well as the funding available to ADB also increases," the ADB vice president said. He earlier led an ADB delegation in a meeting with a Pakistani economic team, which was led by Minister of State for Economic Affairs Hina Rabbani Khar.

Zhao said during the meeting that the major challenge for Pakistan's economy was lack of proper infrastructure, which created hurdles for achieving sustained growth. The minister hoped the ADB would extend its $500 million budgetary support under the Economic Transformation Programme before June 2009. The ADB is currently planning a three-year CPS from 2009-2010 to 2012-13, under which Islamabad could receive as much as $9 billion in assistance.

Dam project: Later, the ADB delegation also met Prime Minister Yousuf Raza Gilani at the Prime Minister’s House and agreed to finance the $8.5-billion Basha-Diamer Dam project. The government is planning to start the dam’s construction in the current year.

The prime minister hoped the ADB would continue its cooperation for helping Islamabad construct new dams to overcome the shortage of energy, food and water. Gilani said construction of a farm-to-market road network, the development of urban and rural areas, provision of equitable economic opportunities and improved social sector facilities were the government’s top priorities.

The prime minister said the government was fully committed to reducing poverty, increasing per capita income, creating employment opportunities and improving the people’s living standards.

While assuring the ADB's complete support for Pakistan, Zhao briefed the prime minister on the development activities undertaken by the bank in various sector of the country’s economy.

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