ISLAMABAD

Key international lenders including World Bank and Asian Development Bank adopted tight cash release policy for Pakistan during previous fiscal year 2014-2015, as they had not released the pledged amount worth three billions dollars for Islamabad.
Pakistan did not receive $2.958 billion from these two financial institutions World Bank (WB) and Asian Development Bank (ADB) as estimated in budget 2014-2015. Pakistan had received $353 million from the WB during eleven months (July-May) of the fiscal year 2014-2015 and amount would increase as the Bank approved two loans amounting to $688 million in June. Yet the received amount would be far less than the estimated $1.9 billion for the last financial year.
According to the latest official figures, the ADB had released $412 million for Pakistan during eleven months (July-May) of the fiscal year 2014-2015. Meanwhile, the ADB has approved assistance of over $220 million to help Pakistan on Tuesday. The government had projected to receive $1.09 billion from the Manila-based lending agency during entire fiscal year (July 2014 t0 June 2015).
Pakistan had failed to convince the World Bank and Asian Development Bank for providing $500 million and $400 million loans respectively for the energy sector before till June 30.
It is worth mentioning here that WB had delayed to approve the second tranche worth $500 million for energy sector reforms. Pakistan's Ambassador in the US Jalil Abbas Jilani had told reporters during previous week that the energy sector loan from the World Bank is expected to be approved in coming September.
Meanwhile, sources informed The Nation that board of directors of the ADB has not taken up Pakistan's case for approval of a $400 million loan in its meeting held on Monday reportedly due to government's failure in bringing energy sector reforms. The $400 million loan was the second tranche of $2 billion five-year Sustainable Energy Sector Reforms Programme. The ADB had approved the first tranche of $400 million in June last year.
However, the Asian Development Bank (ADB) has approved assistance of over $220 million to help Pakistan rebuild and upgrade roads, bridges and other high-priority infrastructure damaged by the devastating 2014 floods.
"Pakistan is highly dependent on agriculture and prone to floods and other extreme weather related-events like the current severe heat wave, and these will worsen as a result of climate change," said Donneth Walton, Principal Natural Resources and Agriculture Specialist in ADB's Central and West Asia Department. "This assistance will support a build-back-better approach, with multi-hazard-resistant features incorporated into the restored infrastructure."
The floods in September 2014 displaced over 2.5 million people across 44 districts, and damaged more than 445,000 hectares of agricultural land, causing severe hardship to about a quarter of a million farmers. A flood assessment report in 2014 estimated recovery needs at around $440 million, including $56 million for building resilience of the affected population and their productive assets.
The ADB loan will be used to rebuild important infrastructure in the worst-hit areas of Punjab and the districts of Haveli, Kotli and Poonch. The restored infrastructure will be built to withstand future extreme weather events. A $2 million technical assistance grant will be extended to increase the capacity of disaster oversight agencies to plan for and handle future disasters.
ADB's assistance will complement relief efforts by other development partners. It will also allow the Government of Pakistan to redirect its finances to housing and livelihood cash grants for vulnerable groups, which will help restore economic activity in affected areas. The project will be carried out over 3 years with an expected completion date of June 2018.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members - 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.