ADB president, who is on his first visit to Pakistan, said that the agency would continue supporting Pakistan in projects like renewable energy, Jamshoro Power Plant and projects of regional connectivity though ADB could lend only $1 billion to any country for development projects.
Talking to Finance Minister Ishaq Dar in Islamabad, Nakao urged Pakistan to mobilise its domestic resources as Pakistan has a vast potential and it could turn itself into a success story in Asia, said a statement issued by the government.
Commenting on much hyped Diamer Bhasha Dam project, Nakao said it is an important project for managing water resources in Pakistan and ADB would help as much as possible. The Manila-based lending agency also extended support for the TAPI project.
During the meeting finance minister told the ADB president that the government would need the ADB’s support on Bhasha Dam project for solving the energy crisis. He informed the ADB president that Pakistan would discuss the Bhasha Dam project at the World Banks’ Business Opportunity Conference to be held in Washington on October 8 this year. “We also want to proceed with the projects of TAPI and CASA-1000 for fulfilling the energy needs of the country in near future,” said Dar.
Briefing Nakao on the economic condition of the country, Dar said that the PML-N government have been following a pro-development macro-economic agenda and improvements can be seen in revenue collection which has increased by 16.44 per cent, decrease in budget deficit by 5.7 per cent, growth in foreign remittances by 13.7 per cent, growth in large scale manufacturing by 4.2 per cent and the disbursement of agricultural credit has also been increased by 15.91 per cent. “Our government has also increased the spending on the social safety net, the allocation has increased from a mere Rs40 billion to Rs118 billion in the last fourteen months of our tenure. We ensured that no cuts were made in the Public Sector Development program allocations.”
The minister lamented that the government could have added $2.4 billion to foreign exchange reserves but recent political situation had delayed the issue of Sukuk, divestment of OGDCL shares and IMF next release. He expressed hoped that the government would solve the issue amicably as it has already constituted a committee on electoral reforms.
Expressing his sympathies for great sympathies for the flood affectees, Nakao said we would like to assist in their rehabilitation process.
As far as the rehabilitation of Internally Displaced People (IDPs) is concerned we would gladly extend our expertise for the reconstruction work, the ADB President remarked.
Chairman National Disaster Management Authority (NDMA) Major General Saeed Aleem also gave a brief presentation to the ADB President on the recent flood damages in Punjab, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan.
The minister thanked ADB president for his visit and appreciated his resolve to help the flood affectees and IDPs.
The meeting was attended by Governor State Bank of Pakistan, Secretary Petroleum and Natural Resources, Secretary National Food Security and Research, Secretary Finance, Secretary Water & Power, Secretary Planning, Development & Reform, Secretary Communication, Secretary Economic Affairs Division, Chairman WAPDA, Chairman Federal Board of Revenue, Chairman National Highway Authority. From the Asian Development Bank team Chief Advisor to the President ADB Naoya Jinda, Director General, Central West Asia Department, ADB Klaus Gerhaeusser, Country Director, ADB Pakistan Resident Mission Werner Liepach, Country Programs Officer, ADB Pakistan Resident Mission Saad Paracha.
COMMENTS (14)
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Pakistan only three persons to surrender / INVEST their holdings and Pakistan will have surplus funds after completing three dams mentioned. (first) Shareef family( investment in the names of sons/daughters- Buildings in UK and other places + 2/3 of Jati Umra Estate (Second) Zardari his money in foreign Banks + Surray Mahal and resorts in Spain (Third) Imran Khan - Land in Bani Gala. All other patriots be welcomed. Believe me their name will be written GOLD in history
@Sajjad: Not really. NS will get re-elected. I know you don't think so but that is the case!
Very timely reminder by ADB to Pakistan that ADB “would encourage the country {Pakistan} to mobilise its domestic resources for development.”
Far too often when it is pointed out by Non-Pakistani’s that latest grandiose gas bag mega costly plan, for example “China Pakistan Economic Corridor”, “Iran Pakistan Gas Pipe Line”, “Point Khalifah Coastal Refinery” , “Asian Energy Hub”, “Gateway to Central Asian Republics” etc.is a pipe dream, Pakistani’s will get offended and immediately chime in that the Chinese or Arabs or Americans will step into the financial void and provide funds. Mobilising domestic resources is always given short shrift, presumably because it is even more conspicuous in its absence in the national economic scene.
The actual cost is close to $35billion and will get complete by 2027. Only China or Japan can finance such a project.
The problem with the FM is that he has zero credibility. On top of that, the civilian government issues statements solely for internal consumption.
The $1 billion country limit is the limit for ADB's Regional Trade Finance Program (TFP) that can revolve every year, so it is possible to finance a multi-year project costing over $1 billion. With the Diamer Basha dam, it is obvious that the government wants to foist this project on to some outside agency so that they take all the risk of capital and also implement the project while Pakistanis look on as outsiders. What the FM fails to realize is that the days of America stepping in and leaning on the IMF, ADB, WB, etc. with back-channel guarantees are long over. Most of the programs by ADB are co-financed by the government and this statement amply shows a lack of understanding of ADB's role as well as a lack of will to implement mega projects.
@Mushtaq Ahmad: " The nation should start setting its priorities right and do the first things first." ++++++++++++++++++++++++++++++++++++++++++ Sir are u asking this of a Country called Pakistan?Really?
" Commenting on much hyped Diamer Bhasha Dam" +++++++++++++++++++++++++++++++++++ Corrected : Commenting on much hyped and much inaugurated Diamer Bhasha Dam
" ADB urges Pakistan to mobilise domestic resources for Bhasha Dam" +++++++++++++++++++++++++++++++++++++++++++ This is a sick joke......when a Bank tells a borrower to use domestic resources rather than go and raise resources a consortium of Lenders ...or from that country which considers such amounts as small change.
" ADB urges Pakistan to mobilise domestic resources for Bhasha Dam" +++++++++++++++++++++++++++++++++++++++ Why dont the real patriots IK & TUQ and their patriots react to this insult and start digging into the ground and create Naya Pakistan.
The nation should start setting its priorities right and do the first things first. This project should have been given the top priority from the very start. Never too late to mend. Start and finish it now even if it requires printing some more currency notes (which is nothing new for the present government). I say so because this government started over indulging in this luxury in its very first month of this term making the life of comman man more miserable by rising prices on a daily basis. It had claimed breaking the begging bowl, but contrary to that it became the biggest borrower ever in the history of this country.
Need to think now, PML-N govt spend almost 0ne billion Dollr on Nandi pur thermal project and we need almost 12 billion US dollar for hydro dam which has 15 time more capacity to prodce at cost of one ruppes compare 42 ruppes per unit by Nandi pur.
@Np: Actual translation " 13 billion dollars as loan to Pakistan ?? Lucky we have rules which restrict lending to a billion dollar per country"
Raise your own resources for Basha - translation, we will not fund it.
This government will spend billions of dollars on this dam which is going to take no less than a decade to complete. The next government will halt this project and will start its own project on which it will spend billions. The next to it will halt it and do the same. We are heading into a hole we ourselves cannot escape. Pakistan is in ruins.