International loans / Grants Updates

[ghazi52]

IMF approves $2.8 billion in fresh funds for Pakistan

Inflows will help country to combat challenges arising from Covid-19


Salman Siddiqui
August 04, 2021

KARACHI: The International Monetary Fund (IMF) has approved allocation of new funds for its member countries, including Pakistan, to help them combat the challenges arising from the Covid-19 pandemic and put the global economy on a sustainable growth path.

Under the new allocations, Pakistan is estimated to receive $2.8 billion during the current month (August 23). The inflows are projected to lift the country’s foreign currency reserves to a new record high of over $20 billion.

Besides, the inflows will not only improve the country’s capacity to make payments for imports and repay foreign debt, but will also help arrest the rupee depreciation against the US dollar and other major currencies.

The State Bank said last week (July 27) “in August, Pakistan’s reserve buffers are expected to rise by another $2.8 billion through the IMF’s planned new global SDR (Special Drawing Rights) allocation.”

Earlier, the Washington-based lender disbursed $1.4 billion to Pakistan in April 2020 under its first global SDR allocation to member countries to cope with the contagious disease. The IMF board of governors approved a general allocation of SDRs equivalent to $650 billion (about SDR 456 billion) on August 2, 2021 to boost global liquidity, according to an IMF press statement.

“This is a historic decision - the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis,” IMF Managing Director Kristalina Georgieva said in the statement available on its official website. “The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence and foster the resilience and stability of global economy.”

It would particularly help the most vulnerable countries struggling to cope with the impact of the Covid-19 crisis, she said. The general allocation of SDRs will become effective on August 23,
2021. The newly created SDRs would be credited to IMF member countries in proportion to their existing quotas in the Fund, it added.

“Currently, Pakistan’s quota (percentage of the total) is around 0.43%,” Arif Habib Limited (AHL) analyst Sana Tawfik said in a post-IMF SDR allocation commentary.

“SBP’s foreign exchange reserves currently stand at $17.82 billion and the (new) inflows can potentially take them past $20 billion - the highest in Pakistan’s history,” Topline Research Director Syed Atif Zafar said in comments on the IMF allocation.

To date, the highest level of SBP reserves was recorded at $19.46 billion in October 2016.

The foreign currency reserves have been on the rise for the past two years due to robust inflows of worker remittances, improvement in export earnings and growth in investment by the non-resident Pakistanis through the Roshan Digital Account (RDA).

The country’s reserves are partly maintained through deposits by friendly countries like Saudi Arabia, Qatar and China and through central bank’s short-term borrowing from commercial banks.

Almost half of the current foreign currency reserves of $17.82 billion “have been built through long-term borrowing from the international financial institutions, friendly countries and short-term borrowing,” Economist Shahid Hasan Siddiqui said the other day. The reserves have dropped slightly by around $200 million to the current level from the four-and-a-half-year high of $18.05 billion recorded in the week ended July 16, 2021.

The central bank said last week that imports might continue to remain high during the current fiscal year, meaning that the uptrend in demand for US dollar may persist and it will impact the rupee-dollar parity and foreign exchange reserves.

Accordingly, the State Bank of Pakistan (SBP) projected the current account deficit to increase to 2-3% of GDP in the current fiscal year compared to a 10-year low of 0.6% recorded in the previous fiscal year.

It, however, said the deficit at 2-3% was sustainable. It would allow the economy to grow by 4-5% in FY22 compared to 4% in FY21.

The increased demand for dollar for imports and foreign debt repayment took a toll on the rupee as the value of local currency dropped to a 10-month low of Rs163.89 against the US dollar in the inter-bank market on Tuesday.

The IMF said about $275 billion (SDR 193 billion) of the new allocation totaling $650 billion would go to emerging markets and developing countries, including the low-income countries.

“We will also continue to engage actively with our membership to identify viable options for voluntary channeling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve sustainable growth,” Georgieva said.

Published in The Express Tribune, August 4th, 2021.

 

[ghazi52]

ADB approves $500m loan to help Pakistan procure Covid-19 vaccines

Dawn.com
August 6, 2021

The Asian Development Bank (ADB) on Friday approved a $500 million loan for Pakistan to help it procure Covid-19 vaccines and strengthen the country’s capacity to implement its vaccination programme.

ADB President Masatsugu Asakawa, in a statement, said the loan for Pakistan was sanctioned under the ADB’s $9 billion Asia Pacific Vaccine Access Facility launched in December 2020.

He said the project will support Pakistan’s national vaccination plan by enabling it to purchase an estimated 39.8m doses of Covid-19 vaccines, safety boxes, and syringes.

The ADB chief added that the programme was aimed at offering rapid and equitable vaccine-related support to its developing member countries.

“Vaccines help to reduce the spread and mortality of Covid-19, restore confidence among citizens, and are vital to the economic recovery," he said.

He underlined that the project would help protect vulnerable groups in Pakistan, adding that it was an integral part of the development partner package, helping the government to mitigate the health, social and economic impacts of the pandemic.

He said the ADB reaffirmed its full commitment to support Pakistan.

Asakawa underlined that the government was aiming to vaccinate the entire eligible population — around 119 million people comprising all those aged 18 years and above — while prioritising frontline health care workers, the elderly, marginalised groups including refugees and internally displaced persons, and people with comorbidities.

“ADB’s Covid-19 vaccine support project will provide financing to vaccinate over 18m people from priority groups.”

In May last year, the ADB had approved a $300 million emergency assistance for Pakistan to strengthen its public health response to the coronavirus pandemic.

Similarly in June 2020, the Asian Infrastructure Investment Bank (AIIB) had approved a $500 million loan to the country, co-funded by ADB, to support cash transfers to poor families adversely affected by coronavirus lockdowns and other government initiatives designed to alleviate the negative economic and social impacts of the pandemic.

The government of Norway had also contributed $5.28m in grant proceeds for Pakistan’s Covid-19 response last year, which was administered by the ADB.

 

[ghazi52]

WB grants $129.99 million for uplift of primary education in Sindh

11 Aug 2021


ISLAMABAD, Aug 11 (APP): The World Bank on Wednesday granted worth US$ 129.99 million for the uplift of primary education system under the “Sindh Early Learning Enhancement through Classroom Transformation Project” in the province.

Minister for Economic Affairs,Omar Ayub Khan, witnessed the signing ceremony of financing agreement of “Sindh Early Learning Enhancement through Classroom Transformation Project” worth US$ 129.99 million with the World Bank, in the Ministry of Economic Affairs.

The project financing includes concessional loan of US$ 100.0 million by World Bank and Education Sector Plan Implementation Grant of US$ 29.99 million by Global Partnership for Education (GPE), said a press release issued by Ministry of Economic Affairs here.

Besides this, an additional GPE Multiplier Grant of US$ 24.78 million would shortly be made available to enhance geographical coverage of the project.

The financing agreement was signed by Additional Secretary, Economic Affairs Division Zulfiqar Haider and Country Director, World Bank,Najy Benhassine while Chief Economist, Government of Sindh, Dr. Naeem Zafar also attended the ceremony on behalf of the provincial government.

Minister for Economic Affairs, Omar Ayub Khan appreciated the World Bank management for extending their continuous support to the government particularly at this difficult time when the country is facing increasing health-related and socio-economic challenges.

He expressed that provision of quality education was one of the top priorities of the government because it played an essential role in the socioeconomic development and prosperity of a nation.

The minister further stressed that equal opportunities in the education, for both girls and boys, must be ensured at all levels.

He highlighted that even at time of prevailing difficult situation, the government of Pakistan kept its focus on social sector including health, education and social protection so that the people get basic necessities of life and economy regains its strength.

He reiterated his government’s commitment to further strengthen implementation of reforms, including reform actions aim to develop key elements of core foundations for Human Capital Accumulation.

The objective of this project is to improve reading skills of early grade primary students and increase student retention in primary schools in selected ten districts of Sindh .

Sindh Early Learning Enhancement through Classroom Transformation Project aims to improve five core elements of learning i.e. prepared learners, effective teaching, learning focused inputs, safe and inclusive school space, and a well-managed education system to end learning poverty.

None of these elements can be left out when seeking to make schools functional and ensuring that students learn and stay in school.

Using a school-based approach that focuses on quality, redresses support for drop-outs, improved teacher capacity, and infrastructure catering to safety and learning needs, also will help address the demand and supply side challenges to narrow the gap of girls’ access, transition, and retention rates.

The project will pilot a school-based behavioral intervention that will help students recognize that their abilities and skills can change and grow and will focus on key skills such as student efficacy and self-management.

The World Bank team reiterated its commitment to continue technical and financial support to the Government of Pakistan for priority areas.

 

[ghazi52]

Pakistan to get $2.77 billion from IMF on August 23

Pakistan working on reform programme to bring stability and sustainability under IMF programme, says finance minister


APP
August 12, 2021

Federal Minister for Finance and Revenue Shukat Tarin has said that Pakistan will get $2.77 billion on August 23 from the International Monetary Fund’s (IMF) general allocations of $650 billion it had approved to boost global liquidity amid coronavirus pandemic across the globe.

Addressing a press conference in Islamabad on Thursday, the finance minister said that the fund would directly transfer the amount to the State Bank of Pakistan (SBP), which, he said, would help further improve the country’s foreign exchange reserves, hence have "a very good impact on the economy".

The minister said that it was unconditional allocations from the IMF and would be used in a productive manner.

He said that Pakistan had been already working on a reform programme to bring stability and sustainability under the IMF programme.

He said that the measures taken by the government had been bearing fruits as was shown by the growth in revenue collection, adding that the increase in revenues was indicative of economic growth.

The minister thanked the IMF for the measures to promote global liquidity, particularly in countries facing challenges amid the Covid-19 pandemic.

The Board of Governors of the IMF had approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.

The allocation would benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.

It would particularly help the most vulnerable countries struggling to cope with the impact of the Covid-19 crisis.

 

[ghazi52]

ADB approves $235m to upgrade Pakistan’s National Highway 55

The Asian Development Bank (ADB) has approved a $235 million loan to upgrade the National Highway 55, locally referred to as N55, in Pakistan that is crucial to regional connectivity and strengthen the government’s operation and maintenance of its national highway network, the Philippines-based lending agency said in a statement on Thursday.

The project will expand the 222-kilometer Shikarpur Rajanpur section of the N55 from two lanes into a four-lane carriageway, it said

 

[ghazi52]

WASHINGTON: The International Monetary Fund’s (IMF) largest-ever allocation of $650 billion in Special Drawing Rights (SDR) became effective on Monday and can bring about $2.7 billion of additional funding for Pakistan as well.

“The largest allocation in history … is a significant shot in the arm for the world,” IMF Managing Director Kristalina Georgieva said in a statement issued in Washington. “If used wisely, (this is) a unique opportunity to combat this unprecedented crisis.”

The total amount of $650 billion will be distributed among member states in accordance with their quota of the Special Drawing Rights (SDRs). The break-up can bring about $2.7 billion to Pakistan, diplomatic sources say.

The SDR is an interest-bearing international reserve asset created by the IMF. A basket of currencies determines its value. The SDR value in terms of the US dollar is determined daily. SDRs can be held and used by member countries.

In December 2019, the IMF approved a 39-month, $6 billion Extended Fund Facility (EFF) for Pakistan.

The enhanced funding, approved on Monday, aims to mitigate the crisis caused by the Covid-19 pandemic, which has already killed 4.44 million people and infected more than 212 million across the globe.

“The SDR allocation will provide additional liquidity to the global economic system — supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt,” the IMF managing director said. “Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.”

The IMF will distribute SDRs in proportion to a country’s quota shares in the IMF. This means about $275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.

“SDRs are a precious resource and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed,” the IMF chief said.

The IMF is providing a framework for assessing the macroeconomic implications of the new allocation, its statistical treatment and governance, and how it might affect debt sustainability. The IMF will also provide regular updates on all SDR holdings, transactions, and trading including a follow-up report on the use of SDRs in two years.

“To magnify the benefits of this allocation, the IMF is encouraging voluntary channeling of some SDRs from countries with strong external positions to countries most in need,” Ms Georgieva said.

Over the past 16 months, some member states have already pledged to lend $24bn, including $15 billion from their existing SDRs, to the IMF’s Poverty Reduction and Growth Trust, which provides concessional loans to low-income countries. The IMF pledged to continue to work with other members to build on this effort.

Ms Georgieva said the IMF was also engaging with its member countries on the possibility of a new Resilience and Sustainability Trust, which could use channelled SDRs to help the most vulnerable countries with structural transformation, including confronting climate-related challenges. Another possibility could be to channel SDRs to support lending by multilateral development banks, she added.

She said this SDR allocation was a critical component of the IMF’s broader effort to support countries through the pandemic, which included: $117 billion in new financing for 85 countries; debt service relief for 29 low-income countries; and policy advice and capacity development support to over 175 countries to help secure a strong and more sustainable recovery.

According to the IMF, members can exchange SDRs for freely usable currencies among themselves and with prescribed holders. Such exchange can take place under a voluntary arrangement or under a mandatory designation plan on members with sufficiently strong external positions, which serves as the ultimate backstop for the SDR market.

Since 1987, the SDR market has functioned through voluntary arrangements without the need to activate the designation plan. IMF members can also use SDRs in a range of other authorised operations among themselves (loans, payment of obligations, pledges) and in operations and transactions involving the IMF, such as the payment of interest on and repayment of loans, or payment for quota increases.

India, which initially opposed the idea of general allocation of SDR but softened its stand at the last minute, will receive $17.94bn worth of additional SDR.

Published in Dawn, August 24th, 2021

 

[ghazi52]

IMF may resume loan programme next month

Two sides likely to reach some compromise on increasing energy prices, tax revenue


Salman Siddiqui
August 24, 2021

KARACHI: The International Monetary Fund (IMF) is likely to resume the $6 billion loan programme for Pakistan next month as officials of both sides, engaged in technical talks, are likely to find a middle ground on conditions of increasing energy prices and revenue collection.

Accordingly, Pakistan is considering increasing the benchmark interest rate, further depreciation of the rupee against the US dollar and other major currencies and increasing the duty on import of luxury items in the current fiscal year.

“We believe Pakistani authorities are likely to successfully complete the sixth review of the IMF programme in September/ October 2021,” Topline Research Director and Chief Economist Syed Atif Zafar said in a report titled “Pakistan and the IMF: Likely Scenarios and Implications” on Monday. “We believe Pakistan and the IMF are likely to reach a middle ground with respect to increase in energy prices and revenue measures.”

The IMF is likely to be encouraged by the tax collection in July 2021, which was 22% higher than the target for the month and grew 36% year-on-year at Rs410 billion. The government has also shared plans to reduce the power subsidy on lifeline consumers and move towards providing direct cash subsidy, which can potentially reduce the future accumulation of circular debt. “We believe that the government may agree to increase power and gas prices by an average of 5-10% and partly pass on the impact of petroleum levy on domestic petroleum products,” he said.

“We can also expect increase in taxes on the import of luxury products, which will serve the dual purpose of attracting higher revenues and discouraging non-essential imports.” The measures will increase inflation expectations and as a result, the central bank may increase the policy rate. “We expect the State Bank of Pakistan (SBP) to increase the policy rate by up to 50 basis points towards the end of (December) 2021 and by another 50 basis points in the first half of 2022.”

“Pakistani rupee may depreciate by around 6% against the US dollar in FY22, closing in the range of 168- 170 in June 2022,” Zafar said. The SBP, in its last analyst briefing in July 2021, highlighted that the gross external financing requirement of around $20 billion in FY22 was overfunded. “We believe it takes into account continuation of the IMF programme. We highlight that roughly 50% of this external financing, showed by the SBP, is through official creditors (nonIMF), who look towards the IMF for comfort.” The IMF programme has been on hold since June 2021.

Earlier, the IMF Executive Board approved the $6 billion 39-month Extended Fund Facility (EFF) for Pakistan in July 2019. Pakistan and the IMF had been unable to conclude discussions on the sixth review (based on endMarch 2021 performance criteria) in June 2021, where reportedly the two were not able to reach consensus over the future roadmap for the resolution of circular debt issue and revenue measures to achieve the targets. As per the research house’s understanding, technical-level talks are underway with staff-level discussions expected to begin next month - on the insistence of Finance Minister Shaukat Tarin.

“The size of loan tranche is expected to be bigger than the previous release, with $1 billion likely to be released after approval compared to the previous tranche of $0.5 billion,” he said. The talks will also coincide with the earlier agreed timeline for the seventh review (based on June 2021 performance criteria), which were scheduled to begin in September 2021. The tranche under the seventh review would be $0.7 billion, if approved, he said.

 

[ghazi52]

Pakistan receives US$2.75 billion from IMF

Tue, 24 Aug 2021,


ISLAMABAD, Aug 24 (APP): The State Bank of Pakistan (SBP) has received US$ 2.75 billion from the International Monetary Fund (IMF), as part of Special Drawing Rights (SDR) allocation announced by the fund recently, the central bank confirmed through a tweet here Tuesday.

“#SBP has received US$ 2.75 billion from the IMF, as part of SDR allocation announced by IMF recently,” the central bank tweeted Tuesday morning.

It is pertinent to mention here that Pakistan was due to receive the amount on August 23 from International Monetary Fund’s (IMF) general allocations of $ 650 billion that had been approved to boost global liquidity amid the coronavirus pandemic across the globe.

The amount was directly transferred to the State Bank of Pakistan (SBP), which had further improved the country’s foreign exchange reserves and is expected to have good impact on the economy.

The Board of Governors of the IMF had approved a general allocation of SDRs equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.

According to IMF statement, the allocation would benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.

It would particularly help most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.

Meanwhile, IMF Managing Director, Ms. Kristalina Georgieva said in a statement that the allocation was a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.

“The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis,” she said.

She said that SDRs were being distributed to countries in proportion to their quota shares in the IMF. This means about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.

“SDRs are a precious resource and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed,” she added.

She said that to support countries, and help ensure transparency and accountability, the IMF has been providing a framework for assessing the macroeconomic implications of the new allocation, its statistical treatment and governance, and how it might affect debt sustainability.

The IMF will also provide regular updates on all SDR holdings, transactions, and trading – including a follow-up report on the use of SDRs in two years’ time, she added.

 

[ghazi52]

Bloomberg announced that the World Bank (WB) and the Asian Development Bank (ADB) are investing $1 billion in Karachi to help modernize public transportation. Bus networks on dedicated lanes are the focus of the projects.

Syed Awais Qadir Shah, Sindh's Minister for Transport and Mass Transit, said in an interview that work on the $550 million Red Line, which is being funded by the Asian Development Bank, will begin this month, and the $455 million World Bank-funded design will begin before the end of the year.

The minister also announced that the ADB's Red Line project will include 280 custom-built buses that will run on methane before switching to batteries. The province aims to develop a biogas plant to generate methane from animal waste.

 

[ghazi52]

Pakistan and Germany on Tuesday signed a financial cooperation agreement worth €129 million.

Federal Minister for Economic Affairs Omar Ayub Khan witnessed the signing of agreement between the Ministry of Economic Affairs, Pakistan and the Federal Ministry for Economic Cooperation and Development, Germany.

The minister appreciated the German’s enhanced bilateral economic cooperation with Pakistan and expressed the two countries are longstanding development partners and congratulated both sides on completing 60 years of development cooperation.

 

[ghazi52]

The Asian Development Bank (ADB) has plans to provide #Pakistan with about $10 billion in fresh assistance for various development projects in addition to $700 million financing currently available to procure Covid-19 vaccines under the bank’s APVAX facility.

The disclosure was made by Eugenue Zukhov, Director General, Central and West Asia Department of ADB during a call he made on Omar Ayub Khan, Federal Minister for Economic Affairs in Islamabad on Tuesday.
Appreciating the ADB for continued technical and financial support to the government of Pakistan, the minister also acknowledged the provision of $500 million for procurement of Covid vaccine, and assured of the government’s commitment to maximum vaccination for the eligible population.

ADB Country Director Yong Ye, Principal Energy Specialist Asad Aleem, Senior Project Officer Nasruminallah Mian also joined the meeting.

Zukhov reiterated ADB’s commitment to support the government’s reform agenda and to speed up the economic recovery process amid the Covid-19 pandemic. He informed that ADB planned to provide Pakistan about $10 billion in fresh assistance for various development projects, particularly in the sectors of urban services, disaster risk reduction and policy-based programmes in the next five years. He also informed that additional financing of $700 million was currently available for Pakistan to procure Covid-19 vaccines under APVAX.

The minister highlighted that given rapid urbanisation and population growth, the urban services sector was a high priority of the present government. “The government is committed to improve urban infrastructure and services including water and sanitation services, public transport, urban flooding and disaster management and health facilities,” he added. At present, ADB was financing 32 development projects amounting to $6.4 billion in energy, road and transport, agriculture and irrigation, urban services, education, health and social protection sectors.

 

[Pakistan Space Agency]

PTI's Baby Debtzilla is by far the most aggreessive.

I mean is this latest loan of $10 billion from the Asian Development Bank really needed?

 

[ghazi52]

Pakistan and Kuwaiti firm signed $190 million a project which will build pipeline from Nabisar to Vajihar in #Sindh’s #Tharparkar desert.

Pakistan’s diplomatic mission in Kuwait in an official statement on Thursday announced that A Kuwaiti state-owned firm will build a 61-kilometer pipeline to supply water from Nabisar to Vajihar in Sindh’s Tharparkar desert.

Pakistan’s ambassador to Kuwait Syed Sajjad Haider and the chief executive officer of EnerTech Global Abdullah Al-Mutairi attended the event virtually.

 

[ghazi52]

Federal cabinet approves $3bn Saudi loan

November 27, 2021

The federal cabinet has approved a $3 billion loan from the Kingdom of Saudi Arabia.

The State Bank of Pakistan (SBP) is expected to receive the amount from the Kingdom by next week, after which the central bank’s foreign exchange reserves would swell to $20 billion from the current $17bn.

Last month, the government had announced that Saudi Arabia will deposit $3 billion with the central bank and extend $1.2 billion of trade finance to support Pakistan’s balance of payments.

Prime Minister Imran Khan on Oct 27 thanked Crown Prince Mohammed bin Salman following the Saudi Arabia’s “generous gesture” of depositing $3 billion with the Pakistani central bank to support the country’s foreign exchange reserves.

PM Khan said in a tweet that he wants to thank His Royal Highness (HRH) Prince Mohammad bin Salman for supporting Pakistan with the deposit of $3 billion in the State Bank of Pakistan and for “financing refined petroleum product with $1.2 bn”

“KSA has always been there for Pak in our difficult times incl now when world confronts rising commodity prices,” the Prime Minister said in his tweet.

 

[ghazi52]

ADB approves $603mn loan to support Pakistan's Ehsaas program

• Under the Integrated Social Protection Development Program, ADB will provide a regular loan of $600 million and a $3 million grant from the Asian Development Fund

BR
08 Dec 2021

The Asian Development Bank (ADB) has approved a $603 million results-based lending program to strengthen and expand social protection programs in Pakistan.

"Under the Integrated Social Protection Development Program, ADB will provide a regular loan of $600 million and a $3 million grant from the Asian Development Fund, and will administer a $24 million grant from the Education Above All Foundation," the ADB said in a statement issued on Wednesday.

The statement further said that by using conditional cash transfers, the program will support the implementation of Ehsaas, Pakistan’s national social protection and poverty reduction strategy.

ADB Director General for Central and West Asia Yevgeniy Zhukov has said that the program marks a significant shift in ADB’s strategic engagement in the social protection space in Pakistan in line with Ehsaas priorities.

“ADB’s support will transition from unconditional cash transfers that provide income support to a mixed-modality approach that focuses more on conditional cash transfers for education, health services, and nutritional supplies that will help reduce intergenerational poverty through human capital development,” he said.

The ADB said that the program supports the Ehsaas goal of expanding cash transfers to improve access to primary and secondary education for children and adolescents of poor families, especially girls.

"It also aims to initiate coverage of accelerated learning programs at primary education level for overaged out-of-school children under conditional cash transfers," the statement said.

The program will also support improvements in implementation and fiduciary capacity for Pakistan’s social protection programs, added the press release.

"This will build on previous ADB support to further improve grievance redress, risk management, financial management, procurement, monitoring and evaluation, and management information systems—functions which help to strengthen internal controls," ADB added.

Special Assistant to the Prime Minister (SAPM) for Social Protection and Poverty Alleviation Dr Sania Nishtar said that ADB is a trusted and longstanding partner, the ADB quoted the SAPM as saying.

"This program is the result of years of engagement with ADB and other partners and focuses on areas where we believe the bank can have most impact. It is a key priority under the government’s Ehsaas strategy,” she said.

“This program incentivizes parents to send their children to schools, particularly girls, and will help to provide specialized nutritious food and conditional cash transfers to children and mothers in the districts of Pakistan that most need it."