ADB, US to invest in dam construction, renovation

Shaikh says Pakistan will be Britain’s biggest aid recipient over next four years.

WASHINGTON: Finance Minister Dr Hafeez Shaikh has affirmed that the Asian Development Bank and the United States will invest in the Diamer-Bhasha Dam project in Pakistan.

“We have asked ADB to send an assessment team to Pakistan soon,” he told a news conference at Pakistan’s Embassy in Washington. He added that the US has also agreed to invest in the renovation of Mangla Dam and the construction of Kurram-Tangi Dam.

The US has notified the Congress that it will spend $223 million on the projects, he said.

Dr Shaikh is wrapping up his week-long trip to Washington, where he attended the IMF-World Bank Spring Meetings 2012 along with his finance team.

He said the International Finance Corporation, which is part of the World Bank, would invest $1 billion in various industries in Pakistan’s private sector, including energy and finance.

Dr Shaikh said the ADB had increased its spending on Pakistan from $1.6 to $1.8 billion and that Britain had announced that Pakistan would be its biggest recipient of aid.

“Britain will spend over $2.25 billion over the next four years, primarily in the field of education,” he added.

While the finance minister highlighted the increasing number of remittances, a higher growth rate and growing exports as signs of progress in Pakistan’s economy, he said that rising oil prices may affect Pakistani exports in the future. He added that worsening market conditions in Europe would also have an impact on Pakistan.

Published in The Express Tribune, April 24^th, 2012.