ADB Approves $250 Million Policy-Based Loan for Sustainable Infrastructure Investments in Pakistan through PPPs
The Asian Development Bank (ADB) has recently approved a $250 million policy-based loan to Pakistan to drive sustainable investments in infrastructure and services through public-private partnerships (PPPs). This announcement marks a significant step towards achieving the country’s development goals and creating an environment conducive to strategic and fiscally affordable PPPs.
According to ADB Director General for Central and West Asia Yevgeniy Zhukov, this programme is part of a comprehensive package of public sector management support that aims to balance fiscal consolidation and growth objectives. The reforms supported by the loan will increase the absorptive capacity of PPP infrastructure investments by creating a more robust legal and institutional framework for public investment management and public financial management for PPPs.
The programme’s operational priorities include addressing poverty and inequalities, promoting gender equality, tackling climate change, and strengthening governance and institutional capacity. By mobilizing private finance through PPPs, the financing gap in public sector infrastructure projects can be bridged, leading to more efficient, innovative, and value-for-money projects.
ADB Economist Sana Masood emphasized the importance of structuring and implementing PPPs correctly to ensure efficiency and value for money. The technical assistance grant funds the programme’s preparation and implementation, with additional support approved for PPP pipeline identification, capacity building, and sector strategy development.
The core objective of the programme is to strengthen the governance framework and enable an environment for PPPs at the federal government level by enhancing policy, legal, and institutional frameworks for public investment management and public financial management. This initiative is a crucial step towards promoting sustainable development practices in infrastructure projects and driving economic growth in Pakistan.
Overall, the ADB’s approval of the $250 million policy-based loan demonstrates its commitment to supporting Pakistan’s development goals through sustainable investments in infrastructure and services. This programme has the potential to transform the country’s infrastructure landscape and create new opportunities for growth and development.
