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HKFP
a day ago
- Business
- HKFP
ADB acting on US concerns over China, bank chief says
The Asian Development Bank was trying 'very hard' to accommodate US concerns over lending to China, the bank's president told AFP, including by slashing loans to the world's second-largest economy. Global development institutions are in Spain this week for a UN summit on financial aid for the world's poorest overshadowed by Washington's gutting of poverty and climate change programs. The United States is a major donor to multilateral banks like the ABD, but Washington's future commitment to development lenders has been in doubt since the election of President Donald Trump. In April, US Treasury Secretary Scott Bessent urged ADB President Masato Kanda 'to take concrete steps' to end loans to rival China. Kanda said lending to Beijing was 'radically decreasing' and had already halved from $2 billion in 2020 to $1 billion in 2024. 'We are already on… a declining trajectory,' the Japanese head of the Manila-based lender told AFP in an interview in Paris on Friday. 'Probably — I can't promise — but probably this declining trajectory will be continued, and someday may be zero,' he added, stressing that such a decision would ultimately be decided by the bank's shareholders and board of directors. Kanda said US demands that ADB curtail financing for China were hardly new and probably 'one of the very few agendas across the aisle in the US Congress'. 'Even under the Biden administration, it was the same request,' Kanda said, referring to the last administration under President Joe Biden. The United States and Japan are the largest shareholders of ADB, which helps bankroll projects in the Asia-Pacific region that lift living standards and promote economic growth. China, India and Australia are also significant members. 'Universal' challenge Kanda said ADB's efforts to raise lending without asking more of taxpayers in donor countries 'was very much appreciated by the United States and others'. 'I try very hard to accommodate the issues of the United States,' he said. Kanda is among thousands this week attending the International Conference on Financing for Development in Seville, the biggest event in a decade on the crisis-hit aid sector. The United States in snubbing the UN-sponsored conference, underlining the erosion of global cooperation on combating hunger, disease and climate change. Trump's cuts have come under particular scrutiny but Germany, Britain and France have also slashed foreign aid while boosting spending in areas such as defence. With budgets in doubt, multilateral development banks have come under particular pressure to step up financing for projects that tackle global warming and prepare poorer countries for climate disaster. Last year, rich countries committed $300 billion annually by 2035 for climate finance in the developing world — well short of the $1.3 trillion that experts say is needed. Last year, the ADB committed to channelling half its annual lending to climate-related projects by 2030 and Kanda said it was likely this would grow in time. The bank was navigating a level of global uncertainty not seen in many decades but it was critical to consider the most vulnerable on the rocky road ahead, he added. 'This is not just a short-term phenomenon of one country, but it is rather universal,' he said. 'This is a really difficult situation. And as long as we don't improve the root cause of this situation — for instance, a more fair society — it will not be so easy.'
Int'l Business Times
2 days ago
- Business
- Int'l Business Times
ADB Acting On US Concerns Over China, Bank Chief Tells AFP
The Asian Development Bank was trying "very hard" to accommodate US concerns over lending to China, the bank's president told AFP, including by slashing loans to the world's second-largest economy. Global development institutions are in Spain this week for a UN summit on financial aid for the world's poorest overshadowed by Washington's gutting of poverty and climate change programs. The United States is a major donor to multilateral banks like the ABD, but Washington's future commitment to development lenders has been in doubt since the election of President Donald Trump. In April, US Treasury Secretary Scott Bessent urged ADB President Masato Kanda "to take concrete steps" to end loans to rival China. Kanda said lending to Beijing was "radically decreasing" and had already halved from $2 billion in 2020 to $1 billion in 2024. "We are already on... a declining trajectory," the Japanese head of the Manila-based lender told AFP in an interview in Paris on Friday. "Probably -- I can't promise -- but probably this declining trajectory will be continued, and someday may be zero," he added, stressing that such a decision would ultimately be decided by the bank's shareholders and board of directors. Kanda said US demands that ADB curtail financing for China were hardly new and probably "one of the very few agendas across the aisle in the US Congress". "Even under the Biden administration, it was the same request," Kanda said, referring to the last administration under President Joe Biden. The United States and Japan are the largest shareholders of ADB, which helps bankroll projects in the Asia-Pacific region that lift living standards and promote economic growth. China, India and Australia are also significant members. Kanda said ADB's efforts to raise lending without asking more of taxpayers in donor countries "was very much appreciated by the United States and others". "I try very hard to accommodate the issues of the United States," he said. Kanda is among thousands this week attending the International Conference on Financing for Development in Seville, the biggest event in a decade on the crisis-hit aid sector. The United States in snubbing the UN-sponsored conference, underlining the erosion of global cooperation on combating hunger, disease and climate change. Trump's cuts have come under particular scrutiny but Germany, Britain and France have also slashed foreign aid while boosting spending in areas such as defence. With budgets in doubt, multilateral development banks have come under particular pressure to step up financing for projects that tackle global warming and prepare poorer countries for climate disaster. Last year, rich countries committed $300 billion annually by 2035 for climate finance in the developing world -- well short of the $1.3 trillion that experts say is needed. Last year, the ADB committed to channelling half its annual lending to climate-related projects by 2030 and Kanda said it was likely this would grow in time. The bank was navigating a level of global uncertainty not seen in many decades but it was critical to consider the most vulnerable on the rocky road ahead, he added. "This is not just a short-term phenomenon of one country, but it is rather universal," he said. "This is a really difficult situation. And as long as we don't improve the root cause of this situation -- for instance, a more fair society -- it will not be so easy."
GMA Network
04-06-2025
- General
- GMA Network
UP Manila, UP Diliman among world's best universities in 2025
The University of the Philippines Manila and University of the Philippines Diliman are among the world's top universities in 2025 according to the Center for World University Rankings (CWUR). The two schools were the only universities in the Philippines that were included in the 2025 edition of the Global 2000 list, which was published on June 2. Among 21,462 universities, UP Manila has an overall ranking of 1,677, representing the Top 7.9%, while UP Diliman ranked 1,784, garnering the Top 8.4%. UP Manila obtained an overall score of 67.4, a little bit higher than UP Diliman which obtained 67 points. The Manila-based university also has an employment rank of 1,047 and a research rank of 1,607. In addition to quality scientific and medical research, UP Manila also conducts studies on Artificial Intelligence, data science, digital information ecosystems, and personalized human-centered technologies. Meanwhile, UP Diliman's employment rank was not indicated, while its research rank is 1711. In the Asia Regional Rank, UP Manila placed 646, while UP Diliman ranked 696. Since 2012, CWUR has been publishing the academic ranking to help governments and universities improve educational and research outcomes. The universities are ranked by education (25%), employability (25%), quality of faculty (10%), and research (40%). In March 2025, UP Manila also secured the 479th spot in the top 500 Best Global Universities ranked by U.S. News & World Report. It was the only Philippine University in the ranking published by the U.S.-based digital media company. The rankings were based on 13 indicators that measure the educational institutions' academic research performance and their global and regional reputations, including the number of publications produced, total citations, books, international collaborations, conferences, regional research reputation, and global research reputation. —Mariel Celine Serquiña/RF, GMA Integrated News
Express Tribune
04-06-2025
- Business
- Express Tribune
ADB snubs India to approve Pakistan loan
Listen to article The Asian Development Bank (ADB) on Tuesday approved an $800 million financing package for Pakistan to enhance tax collection and provide guarantees for securing foreign commercial loans by rejecting Indian objections. The Manila-based lender protected its neutrality by refusing to allow the use of the platform for settling political score by India. The ADB was under pressure from India not to approve the financing package but Pakistan being the founding member has all the rights to secure loans by fulfilling the agreed conditions. The ADB's local office announced on Tuesday that the lender approved an $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan. The lender stated that the $300 million loan was approved for the Improved Resource Mobilisation and Utilisation Reform Programme and the first-ever policy-based guarantee of up to $500 million had also been approved, which was expected to mobilise financing of up to $1 billion from commercial banks. It was the second time in the past three weeks that India failed to block Pakistan's external loans, first in the International Monetary Fund (IMF) and then in the ADB. The Indian executive director tried to block the funding on political grounds. The Pakistani executive director apprised the board that India was financing terrorism in Balochistan and Khyber Pakhtunkhwa, according to the Pakistani authorities. The development came after India had earlier managed to postpone the approval of the $800 million financing package by the ADB for Pakistan for five days by exploiting a lacuna in the rules. The Pakistani authorities said that the Indian executive director raised the issues of high indebtedness of Pakistan and alleged that the money could be used for other than the stated purposes. The Pakistani executive director replied that India's debt was unsustainable compared to Pakistan. The Indian debt-to-GDP was 80.4% of GDP compared to Pakistan's 73.6%, according to the IMF's data. The Pakistani executive director apprised the board that India was fuelling terrorism in Pakistan by providing funding to the terrorists in Balochistan and Khyber-Pakhtunkhwa (K-P). On the point of using the ADB's funding for other than intended purposes, the board was apprised that raising such questions was tantamount to pointing fingers at the lender's financial management and showed lack of trust. The board was informed that Pakistan had necessary means and resources to protect its national integrity and it had proven it during the four-day war last month. Pakistan downed six Indian jet fighters, including Rafaels, during the conflict. The Indian chief of defence staff admitted last week that Pakistan did shoot down Indian jets but he did not disclose the number and the name of the planes. The ADB board was also apprised that Kashmiris were fighting for their right to self-determination and India should not blame Pakistan. Prime Minister's Narendra Modi's war hysteria has brought over seven-decade old unresolved issue of Kashmir into the global political and economic discourse. However, Pakistan needs to put its economic house in order by minimising reliance on foreign lenders and consultants. Many Indians work in these multilateral institutions. There is now a high time that the government should reduce its reliance on the foreign loans, particularly on budget support loans. The ADB's $800 million package is not meant for any development purposes and the money and guarantees will be used to build the foreign exchange reserves. The government had reached an understanding with two foreign commercial banks for a $1 billion loan on the back of the ADB's guarantees due to its low credit rating. The final term sheet and loan disbursement are subjected to the approval of the ADB's $500 million guarantee. Pakistan's gross reserves stand at $11.5 billion, which the government wants to increase to over $14 billion by the end of June. The ADB will charge a nominal upfront fee for giving the guarantee. Despite a recent rating upgrade, Pakistan's credit rating still remains low at B-Negative, which is two notches below the investment grade. Fitch upgraded Pakistan from a substantial default risk to a high risk of default rating. The ADB's $300 million policy loan is the second tranche under the Resource Mobilisation Programme, which the government wants to take for improving the tax collection by the Federal Board of Revenue (FBR). Pakistan had met all the prior conditions for securing the second loan tranche from the ADB. "Pakistan has made significant progress in improving macroeconomic conditions," said ADB Country Director for Pakistan Emma Fan. She added that the new $300 million programme backed the government's commitment to further policy and institutional reforms that would strengthen public finances and promote sustainable growth. "The programme supports far-reaching reforms to improve tax policy, administration, and compliance, while enhancing public expenditure and cash management," stated the ADB. "It also promotes digitalisation, investment facilitation, and private sector development," it added. These measures aim to reduce Pakistan's fiscal deficit and public debt, while creating space for social and development spending. The ADB said that the new programme is underpinned by a comprehensive support package — including technical assistance and close coordination with development partnersdesigned to help Pakistan build long-term fiscal resilience and stability.
Business Recorder
03-06-2025
- Business
- Business Recorder
ADB approves $800mn public finance program for Pakistan
In a key development, the Asian Development Bank (ADB) on Tuesday approved an $800 million program to strengthen fiscal sustainability and improve public financial management in Pakistan. The Improved Resource Mobilization and Utilization Reform Program, Subprogram 2, includes a policy-based loan of $300 million and ADB's first-ever policy-based guarantee of up to $500 million, which is expected to mobilise financing of up to $1 billion from commercial banks, ADB said in a statement. 'Pakistan has made significant progress in improving macroeconomic conditions,' said ADB Country Director for Pakistan Emma Fan. 'This program backs the government's commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.' Pakistan, ADB eye carbon markets as next frontier for green growth The multilateral lender said that the program supports far-reaching reforms to improve tax policy, administration, and compliance, while enhancing public expenditure and cash management. It also promotes digitalisation, investment facilitation, and private sector development. 'These measures aim to reduce Pakistan's fiscal deficit and public debt, while creating space for social and development spending. The program is underpinned by a comprehensive support package—including technical assistance and close coordination with development partners—designed to help Pakistan build long-term fiscal resilience and stability,' the Manila-based lender stated. Adviser to the Finance Minister Khurram Schehzad termed the approval a diplomatic success led by the Ministry of Finance and the Ministry of of Economic Affairs. 'Diplomacy led by Economic Affairs and Ministry of Finance secures majority support at ADB Board,' Schehzad wrote on X. Earlier in April, ADB revised Pakistan's GDP growth forecast for the fiscal year 2025 down to 2.5%, while saying that the country's outlook depends largely on the success of ongoing economic reform.
