Asian Development Bank (ADB) on Tuesday offered Pakistan its technical assistance to turn around loss-making public sector’s entities. Pakistan’s credit rating has significantly improved over recent years and investors are showing keen interest in the existing investment opportunities.
During a meeting with Prime Minister Shahid Khaqan Abbasi, Xiaohong Yang – the country director at ADB – said Pakistan’s return to the international financial market was a clear indication of investors’ confidence in country’s economy.
Prime Minister, Shahid Khaqan Abbasi lauded Asian Development Bank for Pakistan (ADBP) for its continued support for infrastructure projects and expressed his optimism that the relationship will grow further as Pakistan enters an era of high economic growth.
Yang appreciated the progress Pakistan had made towards overcoming the energy-deficit by producing surplus power. She also noted robust economic growth which was projected to reach 5.8 percent during the next financial year, enhanced revenue generation, and structural reforms being undertaken by the present government.
She said the marked improvement in the power sector had not only brought relief to domestic consumers but was also leading to growth in large-scale manufacturing.
The bank official assured Abbasi that the ADB would continue to provide its financial and technical expertise in all mutually agreed areas, including the energy sector.
ADB Offers to Help Revitalise PIA, Pakistan Railways
She offered financial and technical support and expertise in the gas sector as well as the introduction of structural reforms in state-owned entities, including Pakistan Railways and Pakistan International Airlines.
Whereas previously the government made several attempts, in the past to privatise the loss-making PIA, it had to retreat on public protests. PIA incurred a loss of Rs. 45 billion during the last year, Pakistan Railways also suffered a loss of over Rs. 27 billion in the fiscal year of 2016/17.
ADB senior energy specialist, senior economic officer, secretary economic affairs, as well as other senior officers attended the meeting.
Moody’s Investors Service affirmed the government of Pakistan’s B3 and senior unsecured ratings, and maintained a stable outlook. While global rating agency Standard & Poor’s (S&P) also affirmed Pakistan’s long-term ‘B’ and short-term sovereign credit rating.