International loan / Grant

[ghazi52]

Pakistan to seek loan package plus climate finance from IMF​

Pakistan Observer
Feb 27, 2024

Pakistan will seek a loan package from the International Monetary Fund plus 1.5 billion dollars climate finance.
The country is exploring the possibility of increasing the program to $7.5-8 billion, reportedly seeking addition of climate finance in the next bailout package, sources said.

Climate finance will be sought to expand the loan package. The International Monetary Fund provides affordable long-term financing for countries dealing with climate change and pandemics.

According to sources, the authorities are looking for options to increase the upcoming IMF bailout package to 7.5 to 8 billion dollars with possible application for climate finance.

Sources said that the IMF Board of Governors in its meeting in December last year had approved enhancing the quota of all countries and this decision will also be implementable over Pakistan. “Under this decision Pakistan could borrow from 6 to 8 billion dollars”.

Pakistan is seeking a Bangladesh-style deal with the IMF for special financing of 1.5 billion dollars for climate finance, sources said.

Sources said that Pakistan have to allocate initial fund for betterment of the environment before seeking the loan from the global lending institution.

 

[ghazi52]

China rolls over $2 billion loan to Pakistan, says finance minister​

Reuters
February 29, 2024

China has rolled over a $2 billion loan to Pakistan, caretaker finance minister Shamshad Akhtar confirmed on Thursday.
The $2 billion loan was due in March and has been extended for one year. Beijing had communicated the decision to Islamabad, sources say.

Pakistan’s cash-strapped economy is struggling to stabilise from a financial crisis and secured a $3 billion standby arrangement from the International Monetary Fund last summer.

Pakistan’s vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said last week.

The development comes a month after Caretaker Prime Minister Anwaar-ul-Haq Kakar in a letter penned to his Chinese counterpart, requested a rollover of a $2bln loan for a year.

Kakar’s letter also appreciated the steps of the Chinese government in helping Pakistan ease the burden of foreign payments.

It is to be noted that Pakistan acquired safe deposits of $4 billion from China to address the balance of payments issue.

 

[Mr X]

Do we have a complete list of debts of Pakistan?

I remember we owed Paris club about 15 billion dollars in 2008 when Musharraf was the President. Later on, we have not had any leader working to improve the economy and I lost interest in Pakistani economy overtime.

 

[ghazi52]

World Bank approves $150mn financing for two projects in Pakistan​

• Amount of $78mn approved for Digital Economy Enhancement Project (DEEP),
• Amount $71.7mn sanctioned as second additional financing for Sindh Barrages Improvement Project

 

[ghazi52]

Govt borrows record Rs5.5tr from banks​

Financial experts believe new agreement with the IMF may open a window for Pakistan to borrow from the international market.

KARACHI: Within a week, the government borrowed over Rs650 billion from banks to meet its rising expenditure, reflecting the consequence of high inflation.

The State Bank of Pakistan (SBP) data showed that the government’s borrowing from commercial banks reached a record Rs5.5 trillion from July 1 to April 5, 2023-24. This is against Rs2.95bn in the same period last fiscal year.

Only last week as reported by the SBP on April 13, the government’s borrowings from the commercial banks were Rs4.842tr. It shows during a week the government borrowed Rs657bn to reach Rs5.5tr.

This massive borrowing is overburdening the economy, with the domestic debts not leaving space for revenue allocation other than interest payments. The government will have to pay more than half of the total budgetary outlay in interest payments.

During FY23, the government borrowed Rs3.7tr from banks, but the current situation looks alarming as the government has exceeded last year’s level by Rs1.784tr in the first nine months.

 

[ghazi52]

ADB announces $180m project for coastal areas of Sindh​

Dawn
May 30, 2024

KARACHI: The Asian Development Bank (ADB) has announced a $180 million project to restore forests, drains and roads in the coastal areas of Sindh.

The project will focus on restoring drains, roads, and forests in the coastal areas of Thatta, Sujawal, and Badin, which have been severely affected by recent rains and floods.

“A survey, design, and mapping of the Indus Delta in Badin, Thatta, and Sujawal will be conducted before the project begins,” said Minister Jam Khan Shoro.

The minister also suggested increasing the capacity of the Karo Gondro drain and including the Shakoor drain in the project.

The ADB’s $180 million loan will be used to fund the project, which is expected to have a significant impact on the local economy and environment.

 

[ghazi52]

World Bank approves $1b additional financing for Pakistan​

Funds to be used for phase one of the Dasu Hydropower project, aimed at expanding country's electricity supply

The World Bank approved $1 billion in a second round of additional financing for the DASU Hydropower Stage I (DHP I) Project on Monday.

The funds will be used for phase one of the project, aimed at enhancing and expanding the country's electricity supply.

“Pakistan’s energy sector suffers from multiple challenges to achieving affordable, reliable, and sustainable energy,” said Najy Benhassine, World Bank Country Director for Pakistan.

According to the World Bank, the project will improve electricity provision and expand access to socio-economic facilities.

The Dasu Hydropower Project is expected to be a significant development for Pakistan, contributing to the production of affordable electricity.

DHP is a run-of-river project on the Indus River about 8 km from Dasu Town, the capital of the Upper Kohistan District of Khyber Pakhtunkhwa Province. Upon completion, it will have an installed capacity of 4,320–5,400 MW.



The project is being built in stages. DHP-I has a capacity of 2,160 MW and will generate 12,225 gigawatt hours (GWh)/year of low-cost renewable energy. The DHP-II will add 9,260–11,400 GWh per year from the same dam.

“DHP-I is an essential project in Pakistan’s efforts to reverse its dependence on fossil fuels and reach 60 per cent renewable energy by 2031,” said Rikard Liden, Task Team Leader for the Project.

The additional financing will further support ongoing socio-economic initiatives in Upper Kohistan, particularly in the areas of education, health, employment, and transport.

Pakistan urgently requires cheaper electricity resources to reduce reliance on expensive imported fuel-based power generation.

High electricity costs have prompted households, factories, mosques, and hospitals to turn to solar power generation, increasing the burden on those still connected to the national grid.

Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided over $46 billion in assistance. The current portfolio has 55 projects and a total commitment of $14.7 billion.

On June 9, the Federal Board of Revenue (FBR) demanded $25 million from the World Bank to effectively enforce an automated tax refund system under the Income Tax Ordinance (ITO) 2001

 

[ghazi52]

 

[ghazi52]

ADB approves $400mn concessional loan for Sindh Emergency Housing Reconstruction Project​

• Says project is key part of its multifaceted response to Pakistan’s flood crisis and forms part of the bank's commitment to provide $1.5bn in total assistance from 2023 to 2025

 

[ghazi52]

ADB team, BISP official discuss proposed $300m package​

Business Recorder

ISLAMABAD: The Asian Development Bank Fact-Finding Mission, Wednesday, called on Secretary Benazir Income Support Programme (BISP) Amer Ali Ahmad, and discussed the proposed technical assistance package of $300 million from the Asian Development Bank (ADB) to BISP.

During the meeting, the ADB Fact-Finding Mission presented a detailed overview of the programme’s scope, according to BISP.

The presentation covered the proposed additional financing, which includes a significant technical assistance package worth $300 million from ADB, BISP said in an official statement.

This funding is intended to bolster various aspects of the programme, including institutional strengthening, skill training education, and health and nutrition initiatives. These areas are critical for improving the overall social protection framework and ensuring that the beneficiaries receive comprehensive support, it said, adding, the secretary BISP acknowledged the ADB Fact-Finding Mission for their ongoing support and collaboration.

The primary agenda of the meeting was the Integrated Social Protection Development Programme, a joint initiative aimed at enhancing social protection measures for the beneficiaries of BISP.

“The programme’s comprehensive approach aims to provide not just financial assistance but also skills and health support, which are vital for the sustainable development of the beneficiaries,” the secretary BISP said.

The two sides also discussed the inclusion of technical training in the conditional cash transfer framework.

“The meeting concluded on a positive note, with both parties reiterating their commitment to closely collaborate to ensure the programme’s successful implementation. The ultimate goal is to uplift the lives of BISP beneficiaries across Pakistan, ensuring they receive the necessary support to improve their living conditions and overall well-being,” the press release added.

The ADB delegation included Laisiasa Tora, Co-Mission Leader and Principal Public Sector Specialist, Xin Long, Principal Social Sector Specialist, Omer Bin Zia, Senior Project Officer and Sabina Yusifova among others.

Copyright Business Recorder, 2024

 

[ghazi52]

Pakistan has 1-year debt rollover commitments from key lenders: Bloomberg report​

Reuters
August 6, 2024

Pakistan has secured commitments from China, Saudi Arabia and the United Arab Emirates to roll over debt for a year, a boost for the government as it awaits final approval of a new $7 billion loan programme with the International Monetary Fund (IMF), Bloomberg reported on Tuesday.

Pakistan has a peculiar financial arrangement with these three countries in the shape of commercial loans and SAFE deposits that are rolled over every year and form a major part of the IMF programme in terms of external financing needs.

Pakistan has now requested the maturity period of these loans — $5bn from China, $4bn from Saudi Arabia, and $3bn from the UAE — to be extended to at least three years, offering greater predictability under the IMF programme.

Bloomberg said Finance Minister Muhammad Aurangzeb told reporters in Islamabad after a parliamentary committee meeting that the volume of rollovers would be the same as last year, adding that the country has $12bn in bilateral loans that have been extended for the past few years.

The federal government and the International Monetary Fund reached an agreement for a 37-month loan programme in July. Pakistan has relied heavily on IMF programmes for years, at times nearing the brink of sovereign default and having to turn to countries such as the UAE and Saudi Arabia to provide it with financing to meet external financing targets set by the IMF.

Bloomberg reported that Aurangzeb said the government expected to manage a financing gap of as much as $5bn during the fund’s three-year programme.

The IMF in its statement following the staff-level agreement said the new Extended Fund Facility programme was subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

The finance ministry did not immediately respond to a Reuters’ request for comment.

Last week, Prime Minister Shehbaz Sharif said he had written a letter to the Chinese government requesting debt reprofiling for Pakistan.

 

[ghazi52]

ADB approves $320m to rehabilitate KP roads, improve climate resilience​

APP
September 13, 2024

The Asian Development Bank (ADB) on Friday approved a $320 million loan to support the rehabilitation of roads in Khyber Pakhtunkhwa and enhance their safety.

A press release issued by the ADB today said, “The Khyber Pakhtunkhwa Rural Roads Development Project will upgrade around 900 kilometres of rural roads in the province that are susceptible to floods and are in poor condition.

“These cover key routes that link remote communities to education, health care, and markets,” the statement read, adding that the project included “measures to incorporate climate-resilient design, road safety enhancement, and sustainable maintenance practices”.

“Road transport is both a lifeline to the people and a key component of socioeconomic development in Pakistan,” ADB Director General for Central and West Asia Yevgeniy Zhukov said.

The official highlighted that the project will “reduce travel time, lower transportation costs, and increase access to economic opportunities for millions of residents” in KP.

 

[ghazi52]

ADB to provide $2bn in annual assistance to Pakistan for climate resilience over next 3 years​

Dawn.com
September 18, 2024

President of Asian Development Bank, Mr Masatsugu Asakawa, called on President Asif Ali Zardari, at Aiwan-e-Sadr, Islamabad on September 17, 2024 — PID
https://whatsapp.com/channel/0029VaMc238IiRov8okfYy3n
The Asian Development Bank (ADB) has announced that it will provide $2 billion in annual assistance to Pakistan over the next three years to support infrastructure development and climate-resilient initiatives.

In 2022, massive floods triggered by climate change devastated several parts of Pakistan, killing 1,700 people, washing away swathes of agricultural land, affecting 33 million people, and incurring losses worth $30 billion, according to government estimates.

A report by the Policy and Strategy Committee (PSC) and the Oversight Board on Post-Flood Reconstruction Activities showed last week that the country had only received $10.9bn from international development partners out of the total estimated loss for post-flood reconstruction work, leaving a $19.1bn shortfall that has halted the rehabilitation of flood-affected communities in three provinces.

 

[ghazi52]

 

[GoshtWalaPulao]

Man I look at places like Rawalpindi and Karachi even Islamabad. These need drastic improvement- Rawalpindi and Karachi I feel is too far gone, there is garbage everywhere and wires all over the places. The best solution imo is to beat everyone up and ensure that things are maintained and fixed, otherwise people will continue running amok making a mess. Danda wala kom hai.