[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]ISLAMABAD: According to the Asian Development Bank (ADB), the devastating floods in 2022, the impact of the Covid-19 pandemic, security issues, structural risks, and adverse external shocks continue to pose major economic challenges to Pakistan.
According to the bank’s “Factsheet on Pakistan,” uncertainties and institutional factors continue to weigh on project implementation. These included land acquisition procedures, procurement delays due to restrictions, and price fluctuations affecting construction material importation.
Tripartite portfolio review meetings between ADB, the government, and executing agencies, on the other hand, aid in the resolution of project implementation issues.
Continued fiscal consolidation and policy reform efforts will be critical to improving macroeconomic recovery and stability, particularly in broadening the tax base and improving the business environment in the country.
According to the report, reforms are needed to promote high-value-added exports, expand social spending, strengthen the financial and technical sustainability of the energy sector, and implement structural changes that will strengthen institutions and create jobs.
Also Read: Pakistan’s Economic growth expected to slow in FY23
The ADB’s country partnership strategy for Pakistan, 2021-2025, focuses on three priorities: improving economic management, strengthening resilience, and increasing competitiveness and private sector development.
To date, the ADB has committed $ 39.7 billion in public sector loans, grants, and technical assistance to Pakistan.
Pakistan has received a total of $30.76 billion in loans and grants. Regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds were used to fund these.
The ADB’s current sovereign portfolio in Pakistan consists of 53 loans and three grants totaling $9.59 billion.
The ADB’s loan and grant disbursements to Pakistan totaled $ 2.49 billion in 2022. There was $1.8 billion in programme lending, $680 million in project lending, and $4.6 million in grants.
The ADB provided $ 1.5 billion to help Pakistan improve social protection, promote food security, and create jobs.
As of December 31, 2022, the total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Pakistan were $ 242.48 million, representing 1.9 percent of the ADB’s total private sector portfolio.[/vc_column_text][/vc_column][/vc_row]
