ISLAMABAD-Federal Minister for Economic Affairs Sardar Ayaz Sadiq has ruled out the possibility of Pakistan’s default and said resource envelop of $2.67 billion by Asian Development Bank (ADB) proves international development partners’ confidence in the country.
While addressing the financing agreements’ signing ceremony here on Thursday, he said that ADB had approved loans for Pakistan. “If there was a fear of Pakistan’s default, these agreements would not have been taken place. The agreements are proof that Pakistan is not defaulting, only rumours are being spread,” he maintained. The minister said that the concessionary ADB loan was signed at the rate of 1 percent for a period of 40 years.
Government of Pakistan and Asian Development Bank (ADB) signed five financing agreements of $775 million to support recovery and reconstruction efforts, in the flood-affected areas of Balochistan, Khyber Pakhtunkhwa and Sindh. These projects will support reconstruction and rehabilitation of irrigation and drainage structures, flood risk, and on-farm water management, as well as improving power and transport infrastructure in the flood-affected provinces. The signed agreements also include a project to improve access to quality employment for skilled workers in Punjab.
Sardar Ayaz Sadiq, Federal Minister for Economic Affairs witnessed the signing of five Financing Agreements. Dr Kazim Niaz, Secretary, EAD and Asad Aleem, Deputy Country Director, ADB signed the financing agreements. The financing agreements include $475 million concessional loan for Emergency Flood Assistance Project to support recovery and reconstruction efforts in Pakistan following this year’s devastating floods, and to strengthen the country’s disaster and climate resilience. An agreement of $189 million under Second Power Transmission Enhancement Investment Programme (Tranche 4) was also inked for post-calamity restoration of power infrastructure, including transmission lines and substations, in the geographical regions affected by the recent floods. Financing agreement to facilitate two KP project of Water Resources Development Project ($3.6 million) and Naulong Dam Project ($5 million) were also signed. Sardar Ayaz Sadiq expressed his deep appreciation and thanked the president, senior management and board of directors of Asian Development Bank for their continued and enhanced financial support towards rehabilitation and reconstruction of flood affected infrastructure, development of TVET institutional framework as well as development of water resources in the country.
Eugene Zhukov, ADB’s Director General for Central and West Asia Department that includes Pakistan expressed that ADB has approved and committed financing of $2.67 billion to Pakistan during 2022. ADB will continue to support Government of Pakistan’s development priorities and stands committed to support Pakistan for a green, resilient and sustainable recovery.