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Business Recorder
2 days ago
- Business
- Business Recorder
IED rates ADB's 5-year CAP for Pakistan as highly successful
ISLAMABAD: The Independent Evaluation Department (IED) has rated the Asian Development Bank (ADB)'s five years Country Assistance Program (CAP) for Pakistan, amounting $15.1 billion as highly satisfactory and successful. The evaluation document however, noted that headway on reducing debilitating circular debt in the power sector was limited, and growth in access to affordable housing was below target. This Country Assistance Programme Review (CAPR) assesses the performance of ADB sovereign and non-sovereign operations that were completed, ongoing, or approved during 2020–2024 in Pakistan. ADB's IED rates $800m 'TCP' as 'successful' The ADB's portfolio in Pakistan over the 5-year CAPR period comprised of 113 sovereign lending and Technical Assistance (TA) projects amounting to $15.1 billion, as well as three non-sovereign lending and TA projects worth $111.4 million. The ADB's CAP in Pakistan, including performance against the 2021–2025 Country Partnership Strategy (CPS) targets, is rated successful overall. This evaluation follows the new 2024 Guidelines for the Country Assistance Programme Review and Validation, assesses all aspects of ADB's engagement in Pakistan rather than the CPS results alone, and centres on four criteria: relevance, efficiency, effectiveness, and sustainability. The ADB's portfolio facilitated reforms to make Pakistan's energy sector more efficient and sustainable. The CPS set an ambitious target for reducing the annual circular debt flow in the power sector to less than Rs50 billion by 2025 from a very high Rs450 billion in fiscal year 2019. Progress was made. The circular debt had dropped to Rs83 billion by the end of 2024. The Rs50 billion CPS indicator target was not likely to be met by 2025, however, the energy sector continues to be captive to persistent challenges, including the high cost of generating power with imported fossil fuels, transmission and distribution losses, low collection rates, governance issues at electricity supply companies, and delays in tariff adjustments. To improve access to affordable housing, a CPS indicator targeted a mortgage-to GDP-ratio of 0.4 per cent by 2025. As of 2024, despite efforts, the ratio had improved by only 20 percent and stood at 0.3 percent. The pandemic and the 2022 flood disaster have likely put the original CPS objectives for school enrolment out of reach. Health expenditure as a share of GDP rose temporarily due to the COVID-19; still, at 1.2 percent, the average allocation during the CAPR period was well short of the CPS's 2025 benchmark of 3 percent of GDP. The CAP helped Pakistan make progress on several socioeconomic fronts during 2020–2024, but further effort is required in the most challenging areas if the country's ambitious development targets are to be achieved. The CAP strongly aligned with Pakistan's critical development needs and the focus of the government's Vision 2025 on addressing economic, governance, and human development challenges. The ADB investments aimed to improve economic management, build resilience, and boost competitiveness and private sector development—the three pillars of the 2021–2025 CPS, which fully aligned with ADB's Strategy 2023 and linked to all seven of its operational priorities. The programme supported federal and provincial government long-term goals. The ADB maximised its support through a fit-for-purpose mix of financing modalities and instruments. A sound design and ADB's quick and agile adaptations sustained the CAP's relevance through the series of crises that marked the CAPR period, including the COVID-19 pandemic, disastrous flooding in 2022, bouts of severe macroeconomic instability, and three changes in government. The CAP met most of the key outcome targets in the CPS for 2021–2025; 100 percent of the operations completed during the CAPR period, many of which were approved under previous CPSs, were rated effective or highly effective. Top achievements included improved economic management and governance. Targets for raising tax revenues and expanding exports were achieved. So were those for strengthening the resilience of vulnerable populations to climate change and natural disasters. Social protection was expanded through ADB support, and water resource management and irrigation infrastructure were improved. The pandemic and the 2022 flood disaster have likely put the original CPS objectives for school enrolment out of reach. Health expenditure as a share of Gross Domestic Product (GDP) rose temporarily due to the COVID-19; still, at 1.2 percent, the average allocation during the CAPR period was well short of the CPS's 2025 benchmark of 3 percent of GDP. The CAP helped Pakistan make progress on several socioeconomic fronts during 2020–2024, but further effort is required in the most challenging areas if the country's ambitious development targets are to be achieved. The CAP's highly satisfactory rating for efficiency is based on the delivery by sovereign operations of results in an efficient and a timely manner. The portfolio was large, but detailed preparation, sound project designs, and regular stakeholder consultation achieved impressive results on two key indicators over the 2020–2023 period, average time from concept approval to first disbursement (22.4 months), and average disbursement rate (125 percent). The CAP outperformed the ADB average on both these measures. About one of every eight lending projects completed during the CAPR period were rated efficient or highly efficient. Delays in the adoption of related legislative amendments were responsible for the lower efficiency evaluations of most of the remaining projects. Copyright Business Recorder, 2025
Euronews
3 days ago
- Business
- Euronews
Why is the Asian Infrastructure Investment Bank significant?
The tenth annual meeting of the board of directors of the Asian Infrastructure Investment Bank (AIIB) has been making headlines this week. The reason is that the Chinese-led bank has been heavily involved in projects across the region. Experts in Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan are watching the new deals signed with their governments to try to forecast the future of economic developments. There have been several meetings recently with the representatives of the Bank that also sparked interest. Notably, on 29 April, the AIIB organised a panel discussion with Kazakhstan's Ministry of National Economy at the Astana International Financial Centre (AIFC). Representatives from development banks, investment firms, and government agencies agreed that mobilising private capital is essential to closing an Asian infrastructure financing gap worth trillions of dollars. The session opened with remarks by Konstantin Limitovskiy, a chief investment officer at AIIB, who joined virtually to reaffirm Kazakhstan's strategic importance to the bank's portfolio. He noted that Kazakhstan, a founding member of the AIIB, has received more than $2 billion in investments across seven major public and private sector projects. 'These are roads that bring communities closer, renewable energy that lights up homes, and hospitals that provide critical care. Kazakhstan's strategic position as a major dispersion and trade hub aligns with our mission to foster international connectivity,' said Limitovskiy at the time. He emphasised the AIIB's role in projects aligned with Kazakhstan's goal of achieving carbon neutrality by 2060. 'We are supporting Kazakhstan by adding 420 megawatts of green energy so far,' he said, highlighting ongoing wind farm developments and the landmark financing of the country's first hospital under its public-private partnership (PPP) law. The Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB) and the energy ministries of Uzbekistan, Kazakhstan and Azerbaijan also signed a memorandum of understanding on 5 April to support the feasibility study for the Caspian Green Energy Corridor project. 'The Caspian Green Energy Corridor initiative is a strategic priority for the three countries, as well as for ADB, as it directly contributes to our core mission of facilitating cross-border cooperation on clean energy infrastructure while addressing multiple regional challenges,' said ADB Director General for Central and West Asia Evgeny Zhukov. What does the AIIB's portfolio reveal about the region? Across the world, and predominantly in Asia, the bank has committed or approved over $100bn. About half of the development projects relate to energy, transport, and rural transformation. In the list of the Bank's projects, one can see that the five countries of Central Asia have attracted about $7.5bn worth of loans. Indeed, according to the global financial institutions, the average growth of the region over the past 20 years was 6.1%, with its economy projected to be rising at about the same rate this year as well. The EBRD projects a steady growth rate over the next several years. The region also experiences an average annual population growth of 1.1%, adding further strain to its infrastructure — much of which, particularly at the regional level, was built in the 1950s and 1960s during the Soviet era. The highest number of projects funded by the bank was in Uzbekistan and the nature of the projects signals growth and rural development effort by the government. After initial loans in 2020 aimed at mitigating economic effects of Covid 19 pandemic, also extended to Kazakhstan, most of the projects in Uzbekistan found on the AIIB's list concern energy and rural development. These projects include large-scale initiatives exceeding $500 million, aimed at strengthening overall economic resilience, improving infrastructure, and supporting the transition to a green economy. There are also more targeted efforts, such as the (re)construction of water supply systems for towns in the Bukhara region, with two projects worth $248 million and $165mn, respectively. Other examples include the $108mn electrification of the railway between the rapidly growing tourist cities of Bukhara and Khiva, as well as a $100mn urban development project focused on small cities. There are also a number of energy projects, all renewable, hydro power, solar and wind. All but one were non-sovereign projects (not government, but private or public enterprise debt) funding the construction of wind farms and solar parks. These are all in line with Uzbekistan President Mirzyoyev's plan, 'New Uzbekistan 2030', which prioritises the green transition and reduction of carbon emissions. In Kazakhstan, the projects are fewer but used for bigger, strategic projects that are higher in value. One example of this is the proposed half a billion dollar project reconstructing the highway from Aktobe to Ulgaysin or the highway between Zhezkazgan and Karagandy — worth $650mn. This is part of the Middle Corridor project, Kazakstan's strategic attempt to remain the key transit route for transport between East and West. During the April meeting with AIIB in Astana, Vice Minister of Transport Talgat Lastayev emphasised Kazakhstan's commitment to creating a modern and highly developed transport network, supported by state development programmes extending through 2030. 'More than 4,000 kilometres of roads are subject to reconstruction and construction, costing more than $15bn,' he said. 'Sustainable infrastructure development and the transition to clean energy are key areas of Kazakhstan's national strategy.' In Kyrgistan, there is a road project and a relatively small, $50mn loan for green and sustainable transition — an initiative crucial for a region with more and more people and dwindling water – climate resilience. The fact that this and other mentioned projects are co-financed with the World Bank is indicative of the AIIB's standing. From the part of portfolio about Tajikistan one can see that energy sustainability poses a challenge for the country and that there is an effort to resolve it. Two main projects are hydro dams, reconstruction of the Rogun HPP, a major project in the country, funded from the AIIB loan with $270mn and revitalisation of the Nurek HPP — worth $60mn. No projects are listed in Turkmenistan. All in all, the Bank's investment portfolio reflects a region whose initial loans in the early 2020s were aimed at COVID-19 recovery, followed by emergency funding to support liquidity and market reforms. In more recent years, however, the focus has shifted toward targeted growth-oriented and development projects.
India.com
3 days ago
- Business
- India.com
Cash-strapped Pakistan begs for another loan from..., to get Rs 46631675756 loan for...
(File) Pakistan loan: Cash-strapped Pakistan is literally forced to beg for a loan from various financial institutions each month as its crumbled economy is barely enough to keep the country running. According to media reports, the World Bank and the Asian Development Bank (ADB) have approved another $544 million loan for Islamabad for promoting education, and financial security and empowerment of women. World Bank, ADB approves $544 million loan for Pakistan On Wednesday, the World Bank approved a $194 million loan for Pakistan and signed a $350 million loan agreement with ADB to promote financial inclusion and economic empowerment of women. As per a report by Pakistan based Samaa TV, the World Bank loan is meant for two projects– promoting new educational opportunities to children in the restive Balochistan province, and strengthening the country's water security. According to Najy Benhassine, the Country Director for Pakistan for the South Asia region at the World Bank, the primary goal of the project is to improve education opportunities for underprivileged children Balochistan. Additionally, the water security project is aimed to deal with climate change crisis in Balochistan, while the investment in infrastructure and human development will create employment opportunities in the province, the World Bank officer added. The agreement under the Women's Inclusive Finance (WFI) Sector Development Programme was signed on Tuesday by Sabina Qureshi, Additional Secretary, Economic Affairs Division, and Dinesh Raj Sivakoti, Head of Project Administration Unit, Radio Pakistan reported. 'The program will provide women with ample opportunities to better access financial services, expand business opportunities and create new employment opportunities,' the report said. WIF's Sub-Program-2 focuses on four major reform areas, including creating an enabling policy and regulatory environment for the financial inclusion of women, increasing finance for women, strengthening women entrepreneurship capacity and promoting inclusive and equitable workplaces within the financial sector. Pakistan's debt surges to 76,000 billion (PKR) Meanwhile, despite the constant cash-infusion from financial bodies, Pakistan's total debt has surged to 76,000 billion Pakistani rupees in the first nine months of the current financial year, and its economy is expected to grow at a nominal 2.7 percent during the current fiscal, according to the Economic Survey 2024-25 released on June 9. Last year, Pakistan signed a $7 billion External Fund Facility (IFF) loan agreement with the International Monetary Fund (IMF) last year. The second tranche of the loan was disbursed in May this year.
Express Tribune
3 days ago
- Business
- Express Tribune
PSX extends rally on improved confidence
Pakistan Stock Exchange (PSX), after hitting the second-highest single-day gain a day ago, extended its bull-run on Wednesday as investors remained upbeat about the market outlook. The excitement from Tuesday's historic surge, when the KSE-100 index jumped over 6,000 points, was carried forward into the new session due to rising investor confidence, fuelled by easing geopolitical tensions and supportive economic signals. In opening hours, the index jumped 900 points, before entering a range-bound session, where traders locked in profits. The upward momentum was driven by relative calm in the Middle East following ceasefire between Israel and Iran and improving domestic economic indicators. The approval of $194 million in financing from the World Bank and $350 million from the Asian Development Bank (ADB) strengthened Pakistan's external position and broader economic outlook. The index touched the intra-day high of 123,257 and low of 122,169, before settling at 122,762, up 515 points, or 0.42%. Arif Habib Corp MD Ahsan Mehanti noted that stocks recovered as investors weighed Israel-Iran ceasefire talks, easing inflation, a surge in exports and approval of $194 million and $350 million in World Bank and ADB loans, respectively. "Surging global equities, deliberations on privatisation of state enterprises, strong rupee and the circular debt management plan were the key catalysts for bullish close at the PSX," he said. KTrade Securities, in its report, wrote that the PSX extended its rally following the US-brokered ceasefire between Israel and Iran. The index rose 515 points while trading volumes climbed to 750 million shares, largely fuelled by rollover activity ahead of futures expiry. It observed that positive sentiment was driven by strong performance in banking, cement, fertiliser and food sectors, with notable support coming from stocks such as Bank AL Habib, HBL, Fatima Fertiliser, DG Khan Cement and National Foods. The broader market outlook remains upbeat as momentum is likely to continue, provided the ceasefire remains in place, the report added. Arif Habib Limited (AHL) said that the KSE-100 index built on the previous day's surge with a 0.42% gain and closed at the high for June. A total of 55 stocks advanced while 41 declined, where Bank AL Habib (+4.15%), HBL (+3.03%) and Fatima Fertiliser (+6.54%) were the biggest contributions to index gains. AHL pointed out that in a statement regarding trade talks with the US, Finance Minister Muhammad Aurangzeb said "both sides showed satisfaction over the ongoing negotiations and resolved to conclude them next week". JS Global analyst Mubashir Anis Naviwala commented that the KSE-100 index surged over 500 points, extending its bullish run on the back of sustained investor confidence. Positive sentiment dominated the session, where the index touched the intra-day high of 123,257. Overall trading volumes decreased to 749.8 million shares compared with Tuesday's tally of 804.8 million. The value of shares traded was Rs28 billion. Shares of 472 companies were traded. Of these, 274 stocks closed higher, 161 fell and 37 remained unchanged. WorldCall Telecom was the volume leader with trading in 102.4 million shares, gaining Rs0.03 to close at Rs1.49. It was followed by Pakistan Refinery with 47.1 million shares, rising Rs2.39 to close at Rs35.27 and Cnergyico PK with 39.6 million shares, gaining Rs0.09 to close at Rs7.25. Foreign investors sold shares worth Rs949 million, the National Clearing Company reported.
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First Post
4 days ago
- Business
- First Post
Pakistan signs $350 million ADB loan to boost women's financial inclusion
Pakistan has signed a USD 350 million loan agreement with the Asian Development Bank to boost women's financial inclusion and economic empowerment, according to Radio Pakistan. read more Pakistan has secured a $350 million loan from the Asian Development Bank (ADB) aimed at advancing financial inclusion and economic empowerment for women, state broadcaster Radio Pakistan reported on Tuesday. The loan agreement was signed in Islamabad by Sabina Qureshi, Additional Secretary of the Economic Affairs Division, and Dinesh Raj Shiwakoti, Head of ADB's Project Administration Unit, under the Women Inclusive Finance (WIF) Sector Development Programme. The funding under WIF's second sub-programme targets four critical areas: fostering a supportive regulatory and policy framework for women's financial access, expanding financing options for women, enhancing female entrepreneurial capabilities, and building inclusive work environments within the financial sector. STORY CONTINUES BELOW THIS AD The programme is designed to offer women improved access to credit and other financial services, expand their business opportunities, and generate new jobs, Radio Pakistan said. It added that the initiative aligns with Pakistan's broader national goal of integrating women more fully into economic activity. By strengthening women's role in the financial and business landscape, the programme aims to drive equitable growth and sustainable development across the country. The loan comes amid challenging economic circumstances for Pakistan. According to the Economic Survey 2024-25 released on June 9, the country's debt rose to PKR 76 trillion during the first nine months of the fiscal year. Despite the debt burden, Pakistan's economy is projected to grow by 2.7% this year. Islamabad is also pursuing additional external financing. It is currently working to secure $3.3 billion through a syndicated loan and commercial refinancing from Chinese banks, even as it continues under a $7 billion loan programme agreed with the International Monetary Fund (IMF) last year. Pakistan has already received two tranches under the IMF programme, the latest of which was disbursed in May.
