ISLAMABAD: Security and energy shortages are the main challenges of Pakistan. GDP growth is still below the rate required to absorb a growing labor force. However, the macroeconomic environment is improving with higher foreign exchange reserves, lower international oil prices, lower fiscal deficit, moderate inflation and structural challenges.
These views were expressed by Dr. Werner Liepach, the Country Director of Asian Development Bank for Pakistan, during an exclusive interview with Customs Today.
Dr. Werner said that ADB is working with the government, other development partners, and the private sector to broaden and strengthen the country’s energy mix. The bank is assisting the Pakistani government to implement its Power Policy 2013 through Energy Sector Reform Program. ADB’s support includes financing for hydro-power projects, super-critical coal power plants, energy-efficiency programs, and innovative clean-energy initiatives. Under a multi-tranche financing facility, ADB is also helping Pakistan improve its integrated power transmission and distribution systems.
ADB currently envisages public sector lending of about $1.5 billion per year which include reforms and investments in key infrastructure sectors include support for energy, transport and connectivity, water resources, and urban development. Furthermore, ADB is supporting reforms to restructure public sector enterprises, strengthen public-private partnerships, develop robust financial markets, promote financial inclusion and income support, and strengthen the underlying competitiveness of the economy.
Dr. Werner said that ADB shares Pakistan and PRC’s leaderships’ vision for improved regional integration. The proposed economic corridor between China and Pakistan will bolster trade and commerce and economic growth in Pakistan and China and among countries in the region. ADB in partnership with government and the DFID is currently supporting major interventions in Pakistan’s transport sector. These include Expressway-35 (Hassanabdal-Havelian), Motorway-4 (Gojra Khanewal), and key national highways in Balochistan province.
ADB under its new Country Partnership Strategy envisages continued assistance to provinces in overcoming their unique development challenges. ADB is currently providing assistances to provinces in implementing reforms and improving roads and irrigation infrastructure. We do engage with wide range of partners in the country through policy dialogue, consultations and various training and outreach seminars.
Pakistan is strategically located amidst some of the biggest and fastest growing economies. So expanding regional trade and commerce is a major opportunity for the country. ADB is supporting Pakistan in increase connectivity and trade with the Central Asia under the framework of Central Asian Regional Economic Cooperation (CAREC). ADB is also working with the Federal Board of Revenue and other key stakeholders to develop world class border-crossing points at Torkham, Chaman, and Wagha to promote Pakistan as a regional hub.
Pakistan has made good progress in restoring macroeconomic stability. We have worked with many of Pakistan‘s governments and administrations in the past, and the same is true for the government elected in May 2013. We are supporting the government in its ambitious reform program, because we are committed to the people of Pakistan. To ensure a smooth implementation of our projects and programs, we follow very specific mechanisms to ensure transparency and best international practices.
ADB appreciates the government’s thrust on improving project management and understanding the importance of better portfolio performance to ensure timely development impacts and scaling up of ADB assistance in the country. The government and ADB will need to continue to work together to improve portfolio performance further in order to achieve targeted development objectives.
