ADB to finance $6 billion in Pakistan infrastructure projects

[Kabira]

KARACHI: The Asian Development Bank on Tuesday approved a $6 billion loan to help build up Pakistan’s dilapidated power network and other key infrastructure, Islamabad said.

Among the projects to be financed by the ADB is a 660-megawatt coal-fired power plant in southern Pakistan, while funds will also be allocated for projects related to health, education and highway construction.

"(The ADB) agreed to finance US$6 billion for the next five years in Pakistan," an economic affairs ministry statement said, adding that the funds would help Pakistan tackle a long-running electricity crisis.

Along with the 660-megawatt plant, the funds will be used for several hydroelectric dams that will each generate between 100 and 300 megawatts.

Pakistan is expected to see accelerating economic growth in the coming years, with the International Monetary Fund forecasting 4.1 per cent expansion this fiscal year, followed by 4.5 per cent growth next year.

Ratings agency Standard and Poor’s meanwhile has upgraded the country’s credit rating outlook from stable to positive.

But electricity provision continues to be a massive problem.

Pakistan faces an annual power shortfall of around 4,000 megawatts in the peak summer months of June and July when temperatures can reach 50 degrees Celsius (120 Fahrenheit) in the country’s centre.

ADB to finance $6 billion in Pakistan infrastructure projects - thenews.com.pk

 

[Sulman Badshah]

Any investment (loan) by banks directly on projects should be welcomed ...

Govt should ignore the loans which aren't for project purposes like IMF ones ...

 

[Fracker]

When transmission line improves lot of loss can be saved. And that will help wadpa to have more income for new projects.

 

[RAMPAGE]

Get some storage dams financed ASAP!

 

[Kabira]

When transmission line improves lot of loss can be saved. And that will help wadpa to have more income for new projects.

People stealing electricity is one of the main reasons.

 

[Bobby]

Any investment (loan) by banks directly on projects should be welcomed ...

Govt should ignore the loans which aren't for project purposes like IMF ones ...

What is the difference between IMF and ADB

 

[Sulman Badshah]

What is the difference between IMF and ADB

IMF give loan to the govt in term of money .... (no matter what they do with that )

while banks like ADB and WB invest that loan directly into the projects .... so benefit goes to people

 

[SBD-3]

IMF give loan to the govt in term of money .... (no matter what they do with that )

while banks like ADB and WB invest that loan directly into the projects .... so benefit goes to people

IMF's loan is an SBA aka StandBy Assistance. IMF provides the balance of payment support I.e. Boosting the forex reserves by lending reserve currencies.
Except from poverty alleviation (introduced recently) IMF's funds can only be used to pay for import and other debts. IMF's loan can't be converted in local currency.

 

[Sulman Badshah]

IMF's loan is an SBA aka StandBy Assistance. IMF provides the balance of payment support I.e. Boosting the forex reserves by lending reserve currencies.
Except from poverty alleviation (introduced recently) IMF's funds can only be used to pay for import and other debts. IMF's loan can't be converted in local currency.

except for taking lending from IMF ... why not control revenue and expenditures or increase in tax collection to reach expenditure goal ???

 

[SBD-3]

except for taking lending from IMF ... why not control revenue and expenditures or increase in tax collection to reach expenditure goal ???

IMF's structural reforms program, which comes with the lending, is precisely for that...