Asian Development Bank releases $1.5 billion for Pakistan — finance minister

Staff members of the Asian Development Bank step out of the Manila-based lender's headquarters on February 17, 2009. (AFP/File)
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Updated 26 October 2022
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Asian Development Bank releases $1.5 billion for Pakistan — finance minister

  • Funds to help provide social protection, enhance food security in Pakistan
  • Pakistan estimates losses suffered from floods since mid-June at $30 billion

ISLAMABAD: The Asian Development Bank (ADB) released funds to the tune of $1.5 billion for Pakistan, Finance Minister Ishaq Dar confirmed on Wednesday, as the South Asian country looks for financial help to recover from cataclysmic floods that have inflicted heavy losses on it since mid-June.

The ADB said last week it had approved $1.5 billion for Pakistan to help provide social protection, promote food security and support employment in the country. Devastating floods and global supply chain disruptions following Russia’s invasion of Ukraine have damaged Pakistan’s already fragile economy.

The South Asian country estimates losses from raging floods, which have killed over 1,700 since June 14, at $30 billion.

“Asian Development Bank has released funds $1.5 billion to Pakistan under BRACE program for the credit of Govt of Pakistan’s account with State Bank of Pakistan,” Dar wrote on Twitter.

ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE) program will help fund Pakistan’s $2.3 billion countercyclical development expenditure program designed to cushion the impacts of external shocks, including the Russian invasion of Ukraine, the bank said on its website.

Tariq Niazi, an ADB director, had said the program would help Pakistan deal with the impact of immediate shocks to the economy, while, in parallel, continue the structural reforms that are necessary to improve the country’s medium- to long-term macroeconomic prospects.


At UNSC, Pakistan warns competition for critical minerals could fuel global conflict

Updated 54 min 58 sec ago
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At UNSC, Pakistan warns competition for critical minerals could fuel global conflict

  • The demand for critical minerals has surged worldwide due to rapid expansion of electric vehicles, advanced electronics and clean energy technologies
  • Pakistan’s representative says all partnerships in critical minerals sector must be ‘cooperative and not exploitative’ and respect national ownership

ISLAMABAD: Ambassador Asim Iftikhar Ahmad, Pakistan’s permanent representative to the United Nations (UN), has warned that intensifying global competition over critical minerals could become a new driver of global conflict, urging stronger international cooperation and equitable access to resources vital for the world’s energy transition.

The warning comes as demand for critical minerals and rare earth elements surges worldwide due to the rapid expansion of electric vehicles, advanced electronics and clean energy technologies, with governments and companies increasingly competing to secure supply chains while raising concerns that this may lead to geopolitical rivalries in the coming years.

Speaking at a Security Council briefing on ‘Energy, Critical Minerals, and Security,’ Ahmad said experience showed that the risks of instability increased where mineral wealth intersected with weak governance, entrenched poverty and external interference.

“Access to affordable, reliable and sustainable energy is essential for development, stability and prosperity. The global transition toward renewable energy, electric mobility, battery storage and digital infrastructure has sharply increased the demand for critical minerals,” he said.

“This upsurge has generated new geopolitical and geo-economic pressures. If not managed responsibly, competition over natural resources can affect supply chains, aggravate tensions, undermine sovereignty and contribute to instability.”

In several conflict-affected settings, he noted, illicit extraction, trafficking networks and opaque financial flows have fueled armed conflict and violence, weakened state institutions and deprived populations of legitimate revenues.

“The scramble for natural resources and its linkage to conflict and instability is therefore not new,” Ahmad told UNSC members at the briefing. “Pakistan believes that natural resources must serve as instruments of economic development and shared prosperity, and not coercion or conflict.”

He urged the world to reaffirm the right of peoples to permanent sovereignty over their natural resources, saying all partnerships in the critical minerals sector must be cooperative and not exploitative, respect national ownership, ensure transparent contractual arrangements and align with host countries’ development strategies.

“In order to prevent the exploitation of mineral-producing countries and regions, particularly in fragile and conflict-affected settings, support their capacity-building for strengthening domestic regulatory institutions, combating illicit financial flows, ensuring environmental safeguards, and promoting equitable benefit-sharing with local communities,” he asked member states.

“Promote equitable participation in global value chains. Developing countries must be enabled to move beyond extraction toward processing, refining and downstream manufacturing. Technology transfer, skills development and responsible investment are essential to avoid perpetuating structural imbalances.”