ADB to give $300m for capital market development

Financing will help govt create fiscal space through uptick in revenue collection

ISLAMABAD:

The government of Pakistan is committed to introducing reforms in diverse areas including domestic resource mobilisation, climate change and public-private partnership, said Federal Minister for Economic Affairs Omar Ayub Khan. Witnessing the signing of Capital Market Development Programme (sub-programme 2) amounting to $300 million, he said that domestic resource mobilisation would help the government create fiscal space through an uptick in revenue collection and overcome the challenge of fiscal deficit.

The agreement was signed by the Economic Affairs Division and the Asian Development Bank (ADB) on Monday. The minister stressed the need for using digital tools for effective project management and monitoring, and also acknowledged ADB’s continued assistance to the government of Pakistan. It was highlighted that Pakistan had recently completed various reforms under the ADB’s technical and financial assistance including Trade and Competitiveness Programme ($800 million), Energy Sector Reforms and Financial Sustainability Programme ($600 million) and Capital Market Development Programme ($600 million).

At present, 37 ADB-funded development projects amounting to $7.9 billion are being implemented across the country in energy, road and transport, agriculture, urban infrastructure and social sectors. During the current fiscal year, the ADB has disbursed over $1.1 billion for various development schemes. ADB Country Director for Pakistan Yong Ye acknowledged the government’s efforts for completing reforms in the capital market. He also discussed the ADB’s ongoing portfolio and future interventions.

He highlighted a few issues related to the energy sector schemes including MFF Power Transmission Enhancement Investment Program-II (tranche 3) and Greater Thal Canal Irrigation Project. He shared that the ADB would provide support to EAD for the development of an e-portal for effective project management. The Capital Market Development Programme (sub-programme 2) aims to strengthen market stability, enhance market facilitation, widen supply base and improve demand-based measures for capital market development.