The Asian Development Bank (ADB) has granted approval for $658.8 million in financing to bolster Pakistan’s sustainable growth and aid in its recovery from last year’s cost-of-living crisis. The funding will target projects aimed at enhancing domestic resource mobilization, rebuilding schools damaged by the devastating August 2022 floods, and improving agricultural productivity to enhance food security.
In a statement issued by the Manila-based lender on Wednesday, it was highlighted that the financing aligns with ADB’s strategic engagement in Pakistan, aiming to support the country’s efforts to improve its economic situation and enhance the quality of life for its people. The financing includes:
Improved Resource Mobilisation and Utilisation Reform Programme
A $300 million policy-based loan to support the government’s ambition for sustainable, broad-based, and inclusive economic growth. Focus on laying the foundation for reforms to policies, laws, and institutional capacity to improve domestic resource mobilization and utilization. Transformation of tax administration, public expenditure management, and institutional structures.
Sindh Secondary Education Improvement Project
Additional financing of $275 million as part of ADB’s $1.5 billion pledge to support Pakistan’s recovery from the 2022 floods. Reconstruction of up to 1,600 flood-damaged schools using disaster- and climate-resilient and gender-responsive designs. Enhancement of resilience and inclusivity in the education system, aiding the recovery of learning and earning losses, especially for girls in vulnerable districts of Sindh.
Khyber Pakhtunkhwa Food Security Support Project
A concessional loan of $80 million to address climate vulnerabilities, enhance food security, and boost the livelihoods of rural farm households in flood-damaged districts. Provision of essential agriculture inputs and training to smallholder farmers, with a focus on women. Improvement of household nutrition, women’s empowerment, and digital access for market opportunities and climate information.ADB’s commitment to achieving prosperity, inclusivity, resilience, and sustainability aligns with its efforts to eradicate extreme poverty in Asia and the Pacific. Pakistan, as a founding member of ADB, has received over $52 billion in public and private sector financing since 1966 to promote inclusive economic growth and improve infrastructure, energy, food security, transport networks, and social services.
