The Asian Development Bank (ADB) has given loans and grants of almost $1.31 billion to Pakistan in 2021, including $1.01 billion from project lending, $0.30 billion in programme lending, and $3 million from grants.
According to the fact sheet of ADB, overall outstanding balances and undisbursed commitments of the Asian bank’s non-sovereign transactions in Pakistan on Dec 31, 2021, was $441.31 million, showing 3.14 percent of ADB’s total private sector portfolio.
The ADB released its annual report on Monday which says that ADB has donated $22.8 billion from its own resources in 2021 to support Asia and the Pacific tackle the immediate impacts caused due to the Covid-19 pandemic and promote a green recovery.
Moreover, in 2021, the $22.8 billion committed comprises grants, loans and guarantees, equity investments, and technical assistance given to governments and the private sector. Additionally, ADB also mobilized $12.9 billion in co-financing.
Read more: ADB approves $300 million for development of Pakistan’s capital markets
Under the country’s partnership policy 2021–2025, the bank will support Pakistan’s development priorities by emphasizing on building resilience, improving economic management, and increasing competitiveness and private sector development.
ADB’s assistance for financial inclusion, domestic resource mobilization, and energy sector reforms through loans and grants will help macroeconomic management. Funding for workforce readiness and health will help build resilience. Financing for infrastructure and urban sector investments will help improve rural connectivity and urban municipal services.
Besides, improving access to finance and supporting public-private partnerships will increase competitiveness and private sector development to make the economy a sustainable growth trajectory.
The Asian bank will also assist the country to prepare for digital transformation through public institution strengthening, policy improvements, and relevant infrastructure investments.
During the former government tenure, ADB had approved two loan programmes amounting to $1.3 billion for Pakistan meant for emergency budgetary support, mainly through a comparatively expensive crisis response facility.
One of the loans besides the grants was a $1 billion Special Policy-Based Loan (SPBL) for emergency situations that involved around a 4 percent interest rate.
While the other $300 million loan was approved for energy sector reforms for 20 years and five years grace period at 2 percent interest.
