Punjab gets $8.32 million ADB financing for water resources management

ISLAMABAD: The Asian Development Bank (ADB) on Wednesday signed an agreement to provide $8.32 million in financing to Pakistan government for enabling it to enhance water availability and increase agricultural productivity in Punjab, a statement said.

Disbursed as a Project Readiness Financing Facility for the Punjab Water Resources Management Projects, the loan would finance the preparation of detailed designs and safeguard documents, feasibility studies, and other due diligence work ahead of the implementation of five priority irrigation infrastructure projects identified by the provincial government.

ADB Country Director for Pakistan Xiaohong Yang said agriculture was a mainstay of Pakistan’s economy and vital to ensuring continued food security. “This loan will ensure that the proposed, upcoming irrigation projects—which are fundamental to the development of Pakistan’s agriculture sector—get off to the best possible start.”

The agreement was signed by Yang and Secretary of the Economic Affairs Division Syed Pervaiz Abbas at a ceremony in Islamabad.

Punjab is heavily reliant on the Indus Basin Irrigation System, which provides irrigation water to some 15 million hectares of land across South Asia. However, deteriorated and century-old irrigation systems and inefficient water management have led to the unreliable delivery of surface water.

The five projects identified by the provincial government include the rehabilitation and upgrade of Upper Jhelum Canal System; improvement of the Dera Ghazi Khan Canal irrigation system; remodelling of the Rasul–Qadirabad, Qadirabad–Balliki, and Balloki–Suleimanki canals; Greater Thal Canal Project Phase 2 (Dhingana Branch System, Noorpur Branch System, and Mahmood Sub-Branch System); and harnessing of hill torrents in DG Khan and Rajanpur.

The Project Readiness Financing Facility helps ADB members to better leverage development funds, lower project costs, and speed up implementation and overall development processes. “By reducing potential implementation delays, this loan will also enable the Punjab government to mobilise funding for the five priority projects—estimated to be $1.2 billion in total investment—more effectively,” the statement said.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.