ADB approves $250 million loan to strengthen public-private partnership in Pakistan

The Asian Development Bank (ABD) has approved a $250 million policy-based loan for Pakistan in order to support South Asian country’s efforts for sustainable investments in infrastructure and services through public-private partnerships (PPPs), 

The financial assistance aims to provide support to Pakistan for implementing policies made by the government to create a sustainable fiscal environment and promote economic growth.

“This programme is a comprehensive and integrated part of the public sector management support that balances the country’s consolidation and growth objectives,” Associated Press Pakistan quoted ABD’s Director General for Central and West Asia, Yevgeniy Zhukovad saying,

ADB’s financial assistance will support Pakistan’s reforms that will strengthen PPP infrastructure investments by creating a strong framework for public investment management.

“Mobilising the private finance through a public-private partnership can help to bridge the financing gap in public sector infrastructure projects,” said Sana Masood, ADB’s economist.

She added ADB’s assistance would ensure that Pakistan correctly structured the investment programme and implemented it effectively to deliver more efficiency, innovation and value for money.

The ADB was providing financial assistance of $700,000 to prepare and implement the programme. 

In December 2023, an additional $950,000 was approved by ADB to support the government's sector strategy development.

It is pertinent to mention here that Pakistan was a founding member of ADB since 1966. ADB committed over $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive growth in Pakistan.