Asian Development Bank and Pakistan: Fact Sheet
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ASIAN DEVELOPMENT BANK MEMBER FACT SHEET Pakistan: 2020 Loans, Grants, Equity Investments, Technical Assistance, and ADB’s country partnership strategy, 2021–2025 Trade and Supply Chain Finance and Microfinance Program Commitments for Pakistan focuses on three priorities: improving ($ million)a economic management, building resilience, and Product Type Sovereign Nonsovereign Total Loans 1,733.32 – 1,733.32 boosting competitiveness and private sector Grants 19.08 – 19.08 Technical Assistanceb 15.69 0.79 16.48 development. Trade and Supply Chain – 803.58 803.58 Finance and Microfinancec Total 1,768.09 804.37 2,572.46 – = nil, DMC = developing member country, TA = technical assistance. Notes: Commitment is the financing approved by ADB’s Board of Directors or Management for which the legal agreement has been signed by PAKISTAN the borrower, recipient, or the investee company and ADB. Grants and TA include ADB-administered cofinancing. a Numbers may not sum precisely because of rounding. b Financing for TA projects with regional coverage is distributed to Pakistan was a founding member of ADB-SUPPORTED PROJECTS their specific DMCs where breakdown is available. the Asian Development Bank (ADB) c ADB-financed commitments from nonsovereign revolving AND PROGRAMS programs of which $803.58 million is short term. in 1966. ADB has since committed over $36.31 billion to promote inclusive In 2020, ADB’s loan and grant Pakistan: Cumulative Loans, Grants, economic growth and improve the disbursements to Pakistan amounted Equity Investments, Technical Assistance, country’s infrastructure, energy and to $1.78 billion, comprising $1.1 billion and Trade and Supply Chain Finance and in program lending and $680.7 million a, b, c, d food security, transport networks, and Microfinance Program Commitments social services. from project lending. Total % COVID-19 Amount of Total Response ADB provided significant and rapid Sector No. ($ million)e Amounte ($ million)e Aligned with the Government of Projects and 807 36,298.94 81.19 814.63 Pakistan’s development vision, ADB’s support to Pakistan’s coronavirus Technical Assistance disease (COVID-19) pandemic Agriculture, Natural 183 4,535.31 10.14 0.60 new country partnership strategy, Resources, and 2021–2025 focuses on three priorities: response. This included a $500 million Rural Development loan under the bank’s COVID-19 Active Education 34 586.65 1.31 – improving economic management, Energy 140 9,527.91 21.31 – building resilience, and boosting Response and Expenditure Support Finance 98 3,805.25 8.51 2.27 Program to help the government Health 35 1,104.44 2.47 310.95 competitiveness and private sector Industry and Trade 43 1,933.99 4.33 0.21 development. deliver social protection programs. Information and 1 1.95 0.00 0.07 The funds were channeled through Communication Technology Since 1966, ADB has committed the government’s flagship poverty Multisector 33 1,786.55 4.00 – $34.36 billion in sovereign loans, alleviation program, Ehsaas, to expand Public Sector Management 95 6,133.23 13.72 500.33 Transport 89 5,805.58 12.99 – $150.5 million in grants, $1.01 billion in health sector capabilities and deliver Water and Other 56 1,078.08 2.41 0.21 nonsovereign financing, $203.7 million Urban Infrastructure fiscal stimulus to boost economic and Services in technical assistance projects, and Trade and Supply Chain 5,896 8,408.92 18.81 680.64 $591 million in ADB-administered Finance and Microfinancef Finance 2,951 4,204.46 9.40 340.32 cofinancing for Pakistan. Cumulative Industry and Trade 2,945 4,204.46 9.40 340.32 loan and grant disbursements to Total 6,703 44,707.86 100.00 1,495.27 Pakistan amount to $26.96 billion. – = nil, 0.00 = less than 0.005%, COVID-19 = coronavirus disease, DMC = developing member country, TA = technical assistance. These were financed by regular and a Grants and TA include ADB-administered cofinancing. concessional ordinary capital resources, b Includes sovereign and nonsovereign loans and technical assistance. c Using primary sector in reporting of commitments. the Asian Development Fund, and other d Financing for TA projects with regional coverage is distributed to special funds. their specific DMCs where breakdown is available. e Numbers may not sum precisely because of rounding. f ADB-financed commitments from nonsovereign revolving programs of which $8.38 billion is short term. Updated in July 2021 growth and create jobs. ADB also In Punjab, ADB signed an agreement NONSOVEREIGN OPERATIONS approved $2 million from its Asia Pacific to provide $8.32 million through its Disaster Response Fund and $3 million Project Readiness Financing Facility. As a catalyst for private investments, through regional technical assistance The financing will enable vital preparatory ADB provides financial assistance to to help Pakistan purchase personal work ahead of a series of major Punjab nonsovereign projects and financial protective equipment and other projects to enhance water availability intermediaries. Total commitments emergency medical supplies. The bank and increase agricultural productivity. in loans and equity investments from and the Swiss Agency for Development ADB also provided technical assistance ADB’s own funds in 2020 amounted Cooperation cofinanced $1 million to of $1.5 million to strengthen food to $1.4 billion for 38 transactions in train 4,500 doctors and paramedical security and post-pandemic resilience in economic and social infrastructure, staff in COVID-19 critical care. agriculture, following an unprecedented finance sector, and agribusiness. locust infestation. ADB also actively mobilizes ADB committed $300 million in cofinancing from commercial and emergency assistance and $5 million ADB provided a $15 million loan to concessional sources. In 2020, ADB from Norway to strengthen Pakistan’s fund the preparation of spatial master mobilized $1.9 billion of long-term public health system and help meet plans, detailed engineering designs, project cofinancing and $3.3 billion the basic needs of the poor and operational business plans, and ensuring of cofinancing through its Trade vulnerable. The bank also reallocated readiness ahead of the Punjab urban and Supply Chain Finance Program $30 million from the National Disaster development projects. and Microfinance Program. Total Risk Management Project to support outstanding balances and commitments In June 2020, ADB and the government the country’s pandemic response, while of nonsovereign transactions funded signed a $75 million loan for the Sindh the National Disaster Risk Management by ADB’s own resources stood at Secondary Education Improvement Fund allocated an additional $20 million $14.3 billion as of 31 December 2020. Project. The project signifies ADB’s from interest earned. strong commitment to re-engage with Total outstanding balances and In other measures, ADB provided Pakistan in the education sector. commitments of ADB’s nonsovereign a $300 million policy-based loan A number of additional education transactions in the country as of to strengthen Pakistan’s finance projects are planned over the next 31 December 2020 was $497.1 million, sector, develop competitive capital 3 years, particularly in technical and representing 3% of ADB’s total markets, and encourage private sector vocational education and training. nonsovereign portfolio. investment. The bank also committed a ADB raised 1.83 billion Pakistan rupees $300 million policy-based loan to help ($11.4 million) in local currency bonds. PARTNERSHIPS promote macroeconomic stability by The rupees-linked offshore bond will improving trade competitiveness and ADB provided $335 million and enable ADB to extend local currency diversifying exports. partnered with Agence Française de loans to boost to private sector Développement for cofinancing of development in Pakistan. €130 million to develop a bus rapid Pakistan: Evaluation Results for Sovereign Pakistan: Ordinary Capital Resources and Nonsovereign Operations, 2011–2020 Nonsovereign Commitments by Product Total Number 2020 2016–2020 of Validated Evaluation Ratings Number of Transactions Signed – 3 and Evaluated Number of Transactions Signed (Programs) 650 2,679 Projects and Highly successful Less than Amount ($ million) Programs and successful successful Unsuccessful Loans – 101.00 Sovereign 37 15 11 11 Equity Investments – – Operations Guarantees – – Nonsovereign 9 6 – 3 Trade and Supply Chain Finance Program 803.58 3,837.16 Operations and Microfinance Program – = nil, IED = Independent Evaluation Department. Total 803.58 3,938.16 Note: The figures indicate the number of sovereign and nonsovereign operations in the country – = nil. that have been validated or evaluated by the IED and their overall performance ratings. The coverage consists of all validated or evaluated project completion reports and extended annual review reports circulated by ADB within the 10-year period from 1 July 2010 to 30 June 2020. See evaluations related to Pakistan. Pakistan: Portfolio Performance Quality Indicators Source: IED success rate database (as of 31 December 2020). for Sovereign Lending and Grants, 2019–2020 No. of Ongoing Loansa (as of 31 Dec 2020) 46 2019 ($ million) 2020 ($ million) Pakistan: Projects Cofinanced, b, c 1 January 2016–31 December 2020 Contract Awards 430.69 514.73 Disbursementsb 2,287.72 1,770.67 Cofinancing No. of Projects Amount ($ million) No. of Ongoing Grantsa,d (as of 31 Dec 2020) 1 Sovereigna 35 2,313.82 2019 ($ million) 2020 ($ million) Loans 10 2,092.37 Contract Awardsb, c, d – – b, d Grants 10 178.19