ADB Disbursed $1.31 Billion to Pakistan in 2021: Report

The Asian Development Bank (ADB) loaned and granted disbursements amounting to $1.31 billion to Pakistan in 2021, consisting of $0.3 billion in program lending, $1.01 billion in project lending, and $3 million in grants, says a Bank document released in September, 2022.

Under the country partnership strategy 2021–2025, ADB will support Pakistan’s development priorities by focusing on improving economic management, building resilience, and boosting competitiveness and private sector development.

The Bank, in its report, “Asian Development Bank member fact sheet”, the financing was intended to reduce poverty and improve the country’s prosperity and resilience by supporting infrastructure, urban services, the private sector, energy and food security, transportation networks, and social services.

To date, the bank has committed $7 billion in public sector loans, grants, and technical assistance to Pakistan. The total loan and grant disbursements to Pakistan total $28.27 billion, according to the report.

Since 1968, ADB has committed 723 public sector loans, grants, and technical assistance totaling $37 billion to Pakistan. Cumulative loan and grant disbursements to Pakistan amount to $28.27 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.

ADB’s ongoing sovereign portfolio in Pakistan includes 48 loans and three grants worth $8.42 billion. The lender’s support to Pakistan’s coronavirus disease (COVID-19) pandemic response in 2021 included a $500 million loan in August to help procure and deploy a safe and effective vaccine, and a $603 million loan—of which $3 million is from the ADF—for an integrated social protection program to strengthen Pakistan’s flagship Ehsaas program.

The loan is complemented by a $24 million grant from the Education Above All Foundation. The program builds on an earlier $500 million loan under ADB’s COVID-19 Active Response and Expenditure Support Program and a $300 million emergency assistance loan to strengthen Pakistan’s public health response to shield the poorest families from the pandemic.

ADB committed $300 million for the construction of the Balakot hydropower plant on the Kunhar river near Balakot City in Khyber Pakhtunkhwa. By 2027, the plant will add 1,143-gigawatt hours of clean energy annually to the country’s energy mix, enhancing the energy sector’s reliability and sustainability.

Another $300 million policy-based loan was committed to supporting reforms to strengthen Pakistan’s energy sector and improve its financial sustainability. The program will help reduce and manage the accumulated cash shortfall across the power supply chain known as circular debt. ADB continued to strengthen Pakistan’s finance sector, develop competitive capital markets, and encourage private sector investment.

The lender committed a $235 million loan to further upgrade the 222-kilometer Shikarpur–Rajanpur section of the National Highway 55 from two lanes into a four-lane carriageway, linking the ports of Karachi and Gwadar in southern Pakistan with national and international economic centers to the north.

ADB committed a $385 million loan to improve livability and community health in the Khyber Pakhtunkhwa cities including Abbottabad, Kohat, Mardan, Mingora, and Peshawar, benefiting over 3.5 million people.

Non-sovereign Operations

Total outstanding balances and undisbursed commitments of ADB’s non-sovereign transactions in Pakistan as of 31 December 2021 was $441.31 million representing 3.14 percent of ADB’s total private sector portfolio.

Operational Challenges

The COVID-19 pandemic continues to pose major health and economic challenges to Pakistan. Continued efforts toward fiscal consolidation and policy reforms will be key to sustaining improvements in macroeconomic stability, especially in broadening the tax base and improving the business environment. Reforms are required to promote high value-added exports, expand social spending, reinforce energy sector financial and technical sustainability, and implement structural changes that will strengthen institutions and create jobs.

Pakistan was a founding member of the Asian Development Bank (ADB) in 1966. Since then, ADB has helped the country reduce poverty and improve the country’s prosperity and resilience by supporting infrastructure, urban services, the private sector, energy and food security, transport networks, and social services.

Aligned with the government’s development vision, ADB’s country partnership strategy 2021–2025 for Pakistan focuses on three priorities—improving economic management, building resilience, and boosting competitiveness and private sector development.

Under the country partnership strategy 2021–25, ADB will support Pakistan’s development priorities by focusing on improving economic management, building resilience, and boosting competitiveness and private sector development.



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