- Asian Infrastructure Investment Bank has also committed to co-finance additional $500 million under Countercyclical Support Facility
The Asian Development Bank (ADB) has agreed to repurpose and enhance its assistance for Pakistan to support the rehabilitation and reconstruction after flood damages, through ongoing reforms besides balancing a mix between project mode of financing and program lending.
However, it is subject to the results of the Post Disaster Needs Assessment being jointly conducted by the ADB, World Bank and the UN agencies, read a statement released on Thursday.
The development comes after a high-level Pakistan delegation, led by Sardar Ayaz Sadiq, Federal Minister for Economic and Political Affairs, held a series of meetings with the senior management of the ADB on the sidelines of the 2022-55th annual meetings of the Multilateral Development Partner.
During the meeting, ADB Group President Masatsugu Asakawa shared his condolences with the minister for the loss of precious lives in the recent devastating floods and assured ADB’s support in relief, rescue and rehabilitation efforts.
Sadiq appreciated the ADB’s management for fast-tracking the proposed $1.5 billion Countercyclical Support Facility (CSF) to help the government develop and implement countercyclical expenditure measures for mitigating the impact of cumulative shocks on Pakistan economy.
During the meetings, Shixin Chen, Vice President (Operations-I) ADB, assured due support to Pakistan under this initiative and informed the Asian Infrastructure Investment Bank (AIIB) has also committed to co-finance additional $500 million under the CSF.
Minister EAD, while appreciating ADB’s support to Pakistan, assured that the present government is committed to implementing reforms in key areas of economy and governance.
As per the statement, the two sides discussed the performance of the ADB’s ongoing portfolio in Pakistan and future pipeline projects.
Meanwhile, Secretary EAD Dr Kazim Niaz stressed upon the board members the need to focus on post-flood reconstruction and rehabilitation without compromising the development needs of the country. He also emphasised the need for focusing on Climate-resilient Infrastructure development for power and communications, housing, education, and health sectors.
The ADB board members assured their full support in the reconstruction efforts and exploring avenues to further enhance the ADB interventions in Pakistan.
Last week, ADB announced that it is working on a relief package for Pakistan, currently battling devastation caused by unprecedented floods.
“Following the devastating floods in Pakistan, ADB is working quickly to provide a significant package of relief and rehabilitation,” it said in a series of tweets.
“The package is designed to support people, livelihoods, and infrastructure immediately.”