PM seeks ADB's support for Pakistan-Central Asia trade, energy corridors

ISLAMABAD: Terming the Asian Development Bank (ADB) as a strategic partner in Pakistan's development, Prime Minister Shaukat Aziz said Friday the country particularly looks for assistance in sectors like energy, North- South corridor, social sectors, capital markets, pension systems reform, financial management system reforms, building infrastructure and developing human resource.

He was talking to Juan Miranda, Director General ADB who called on him here at the PM House this afternoon.

The Prime Minister said that Pakistan attaches great importance to its relationship with the ADB and would need ADB's support in establishing the energy, transportation and trade corridors between Pakistan and Central Asia.

He also appreciated the help provided by the ADB for the relief and rehabilitation of the areas hit by earthquake last October.

Giving an overview of the economy, the Prime Minister said Pakistan's economy maintained a solid pace of growth during the last three years ranging between 6-8 per cent.

The magnitude of growth achieved during this period has positioned Pakistan as one of the fastest growing economies in Asia.

The Prime Minister said Pakistan is fast becoming a destination of choice for the foreign investors and this year the Foreign Direct Investment has reached $ 3.5 billion, which is a record.

He said the exchange rate is steady, inflation is reducing and credit rating and balance of payment situation has improved. There is an appreciable increase of 20 per cent in country's exports and 22 per cent in revenue collection, he added.

The Prime Minister said the government has allocated a record high amount of Rs. 415 billion for Public Sector Development Programme in the current year's budget in order to transfer the benefits of the high economic growth to the people and improve their standard of living.

He said the per capita income has reached $ 850 which is highest in the region and the incidence of poverty has decreased significantly, bringing about 10 million people above the poverty line during the last five years.

Juan Miranda told the Prime Minister that ADB would continue to support Pakistan particularly in the energy and water sectors.

"We have given an endorsement to the fact that we are willing and able to work on the dams project particularly the Diamer-Bhasha Dam and to work on the transmission and distribution of electricity", he said.

Miranda said ADB has also approved a $ 400 million project for renewable energy including hydel, wind, bio-gas and solar energy. "In addition we would be looking at the urban sectors especially focusing on Karachi Mega City Program for which we plan to allocate around $ 100 million next year."

The Bank would also provide assistance to the Lahore Mass Transit System, he said.

Miranda appreciated the economic performance of Pakistan during the last few years and said the success is mainly due to a strong leadership and efficient economic management.

He said ADB was impressed by the economic turnaround achieved by Pakistan and the encouraging trends in its economy.

He assured the Prime Minister that the Bank would provide assistance on an annual basis.

He said ADB intends to increase its annual loan commitment to about $ 2 billion which is considerably higher than the funding of around $ 800 million which was the average during the last decade.

The meeting was attended by Advisor to Prime Minister on Finance Dr. Salman Shah, Minister of State for Economic Affairs Division Ms. Hina Rabbani Khar and senior government officials.