ADB hints at additional $2.5bn funding for next fiscal

ISLAMABAD: Pakistan is likely to receive additional $2.5 billion in budgetary support from the Asian Development Bank (ABD) in the fiscal year 2023 as the government seeks help to overcome a ballooning balance of payments crisis.

A government statement on Thursday said $1.5-2 billion could be available during the calendar year.

Yong Ye, country director ADB, indicated the funding plan at a meeting with Dr Aisha Ghous Pasha, minister of state for Finance and Revenue. Senior officials of finance ministry also attended the meeting.

Officials said the ADB had committed $10 billion lending for Pakistan under the Country Partnership Strategy (CPS) for 2021 to 2025, envisaging $2.5 billion on an annual basis.

Pakistan urgently seeks more funding through programme loans in order to avert its balance of payment difficulties and it is encouraging to note that ADB wants to move ahead to extend its all-out support for Pakistan. The latest CPS will continue to be implemented till 2025.

Pakistan is classified as a group B developing member country with access to regular ordinary capital resources (OCR) lending and concessional OCR lending. The indicative resources available for commitment during the first three years of the CPS period (2021–2023) total $5.4 billion, comprising $3.6 billion for regular OCR lending and $1.8 billion for concessional OCR lending.

According to the official statement, while welcoming the ADB team, minister Pasha acknowledged that ADB has always assisted in pursuance of the reform and development agenda in the country.

She recognised the all-weather and trusted partnership of ADB with Pakistan especially in the areas of energy, education, and fiscal and debt management.

Further, she shared that currently Pakistan is facing various fiscal and monetary challenges but the present government is keenly working on various structural reform measures to bring back the economy on an inclusive and sustainable growth path.

The ADB country director briefed the Minister of State on the ADB’s portfolio and the country strategy. Ye said ADB was devoted to providing support for the reform agenda of SOEs governance and regulations, women-inclusive finance sector development, and PPP frameworks.

State finance minister thanked ADB’s Yong Ye and his team for their dedication and assured them of full support and speedy implementation of the ongoing programme.