ISLAMABAD: The Asian Development Bank (ADB) said on Wednesday it has approved a $250 million loan for driving investments in Pakistan through public-private partnerships (PPPs), in its bid to encourage the country in fulfilling its development goals.
The regional development bank has committed over $52 billion to Pakistan, one of its founding members, since 1966 in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth in the country.
In December, the ADB approved three projects totaling $658.8 million to improve Pakistan’s domestic resource mobilization, rehabilitate schools damaged by the devastating August 2022 floods, and enhance agricultural productivity to improve food security.
“The ADB has approved a $250 million policy-based loan to help the Government of Pakistan drive sustainable investments in infrastructure and services through PPPs,” the development bank said in a statement.
It highlighted that the bank’s PPP program supported the implementation of government policies to create a fiscally affordable environment for public-private partnerships, apart from promoting economic growth.
“This program is part of our comprehensive and integrated package of public sector management support that balances the country’s fiscal consolidation and growth objectives,” ADB director-general for Central and West Asia, Yevgeniy Zhukov, was quoted as saying.
The official said the program will help Pakistan’s government create an environment conducive to strategic, fiscally affordable PPPs that will bring the country closer to its development goals.
“The reforms will facilitate efficient infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk screening and gender considerations in project feasibility assessments and PPP contracts,” the report stated.
ADB Economist Sana Masood termed it vital to mobilize private finance through PPPs, adding it might help bridge the financing gap in public sector projects.
“This program will help ensure PPPs in Pakistan are structured correctly and implemented effectively to deliver more efficiency, innovation, and value for money,” she observed.
