Country director assures ADB’s continued support for priority sectors
ISLAMABAD – Federal Minister for Economic Affairs, Sardar Ayaz Sadiq on Friday urged the Asian Development Bank to extend its support in areas like value added and robust cold chain industry in agriculture commodities.
Country Director, Asian Development Bank, Yong Ye called on the Federal Minister for Economic Affairs, Sardar Ayaz Sadiq. Minister for Economic Affairs has welcomed the ADB’s Mission to Pakistan. Matters of mutual interest were discussed in the meeting. Minister for Economic Affairs appreciated ADB’s long standing and trusted partnership since 1966 and generous and timely support of over US$ 25 billion, for priority areas, including economic reforms, energy, road & transport, agriculture & water and social sector.
The country director ADB briefed the minister about ADB’s support to Pakistan in pre and post-Covid days. ADB supported Pakistan in following areas: energy, transport, agriculture and natural resources, fiscal policy making, domestic resource mobilization public financial and debt management, public private partnership, SME development, financial and capital market, housing and green finance. The minister appreciated the efforts and highlighted the current flood situation of the country and expressed the need of collaboration to strengthen flood resilience.
Minister for Economic Affairs appreciated the ADB assistance in the economic stabilization of the country during the testing times of the pandemic. He urged the ADB Director to also extend support in other areas like value added and robust cold chain industry in agriculture commodities. He further apprised the ADB that owing to current commodity and energy high prices across the globe, there is high need for early approval of Counter Cyclical Facility.
The minister expressed gratitude to the Country Director ADB for visiting the Ministry. The CD ADB also assured ADB’s continued support for the priority government sectors highlighted in the meeting.
Meanwhile, Federal Minster for Economic Affairs, Sardar Ayaz Sadiq warmly welcomed the Ambassador of Denmark to Pakistan, Ms Lis Rosenholm in Ministry of Economic Affairs to discuss Inter-Governmental Framework Agreement between the Government of Kingdom of Denmark and Government of Islamic Republic of Pakistan. Matters of mutual interest were discussed in the meeting.
Minister Ayaz Sadiq apprised the ambassador that Pakistan and Denmark enjoy a friendly and cordial relationship and a lot potential exist to enhance the relationship between both nations. He further stated that the efforts to revive bilateral economic and development cooperation between the two countries paid off with Denmark agreeing to provide on-budget support to the government of Pakistan through this Inter-Governmental Framework Agreement and the focus on Waste Water Treatment Projects in Faisalabad and Lahore is immensely appreciated.
Minister further apprised the ambassador about the projects already in pipeline by the support of development partners including AFD, ADB and JICA on the water waste management and expressed his desire to conduct a joint meeting with the involved development partners to discuss feasibility studies and roles of each project to avoid overlapping of the projects.
The ambassador highlighted that the Framework Agreement is a Strategic Agreement that would further open numerous possibilities to identify more areas of cooperation. She put special focus on collaboration in areas including climate change, water waste management, renewable energy and green infrastructure.
This Framework Agreement offers the Danida Sustainable Infrastructure Finance (DSIF) Facility by the Danish side which would provide interest free but tied loans up to but not limited to € 100 million aimed at transfer of technology and knowhow. The interest free loans after signing this framework agreement will have a 35% concessionally element covering the interest on the loan, export premium, bank margin and an upfront grant if these expenses do not arrive at 35% of the contract amount. The loans would have a 10-year maturity period generally and 15 years can be accommodated in exceptional cases.
Minister highly appreciated the idea and further discussed the potential sectors in which collaboration is needed. He also highlighted the current flood situation of the country and expressed the need of collaboration to strengthen flood resilience. He further stressed on the exchange of trade delegations that can help in promoting and enhancing economic and trade relations. Moreover, he stressed to have joint ventures with Danish companies for increasing production and export of dairy products with the special focus on cheese production.
The meeting was ended with a vote of thanks from both sides. Both sides agreed to hold the meeting of the Framework Agreement in coming week.