ADB to provide Pakistan $1.5 bn loan during 2016

ISLAMABAD: The Asian Development Bank (ADB) plans to provide around $1.2 to $1.5 billion loans to Pakistan during 2016 mainly in the field of infrastructure under the Public Private Partnership mode.

The Country Director ADB Werner Leipach and Sami Saeed, Pakistan’s Executive Director in the ADB, separately called on Finance Minister Senator Mohammad Ishaq Dar at the Ministry of Finance on Monday morning.

According to sources, the ADB’s existing portfolio stands at around $4.5 billion for all ongoing projects. Now the ADB has given range of its ceiling for providing assistance to Pakistan and Islamabad’s economic managers will make efforts to convince Manila based lender for another DPC loan for overhauling cash bleeding energy sector and promoting growth through budgetary support. But nothing has so far been finalised on this front.

Mr. Leipach apprised the minister of the progress of the on-going ADB portfolio in the country and plans relating to financing of projects in 2016. He mentioned that ADB’s total co-financing for Pakistan stood around $1,050 million including $400 million grant commitments from DIFD. ADB has also provided trade finance support for the private sector investments to the tune of $95 million.

While sharing the details of ADB’s financing plans for the coming year 2016, Leipach stated that the bank plans to provide financing of around $1.2 to $1.5 billion dollars, mainly in the field of infrastructure under the Public Private Partnership mode. He further stated that the establishment of Natural Disaster risk Management Fund and its operationalisation will be one of the priorities of the ADB in the year 2016.