The Asian Development Bank (ADB) has given the approval of 5-year country partnership strategy (CPS) with Pakistan, estimated at approximately $10 billion.
The Manila-based lender will provide these loans from 2021 through 2025, including the $6.3 billion that it plans to approve in the next three years. However, the actual approval and disbursement of these loans will depend on Pakistan’s ability to meet conditions and timely process loan documents.
The Director-General, ADB for Central and West Asia, Eugene Zhukov said like many countries in the region, COVID-19 has affected Pakistan, revealing the extent to which the population is exposed to economic and social vulnerabilities.
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The Bank aims to improve health care and will extend more support to manage public health issues. Pakistan is striving hard to overcome the losses due to COVID, ADB will help the country to restore economic stability and growth in the country. Bank will support to enhance people’s well-being, create jobs and expand economic opportunities.
The Country Partnership Strategy 2021-25 by ADB will build greater resilience of the population and help tackle persistent structural challenges of Pakistan.
The focus of CPS will be mainly on three sectors which include improving economic management, building resilience through human capital development and social protection, and boosting competitiveness and private sector development.
The government of Pakistan will be helped to make reforms in macroeconomic issues which was affected due to the COVID-19. Support will be extended to reform the country’s trade prospects and external position.
Under the new CPS, the reforms would be made in secondary education, technical and vocational education, and training. The important issue of out-of-school children and those who come from poor and vulnerable families will be addressed.
The Country Director of ADB in Pakistan, Xiaohong Yang said that the CPS places a strong focus on combining reforms with physical and social investment to improve sustainability and generate lasting development impact.
Under this program, there would be cash transfer to the evidence-based poor through a newly established policy research unit.
ADB with the partnership plan would help Pakistan to attract private sector investment in renewable energy, small and medium-sized enterprises trade, and supply chain finance.
Under CPS, women’s issues will be addressed regarding their economic wellbeing and they will be enabled to be skilled. The ADB aims to increase women’s access to financial services and raise women’s education level.
The Bank will support the country to cope with the climatic changes and strengthen adaptation and disaster risk management. The bank will continue deepening and diversifying the country’s financial market to promote investment, growth, and private sector development.