Lenders Approve $940 Million for Pakistan Reforms and Infrastructure
Lenders have approved a significant financial package totaling $940 million for Pakistan, targeting crucial reforms in state-owned entities (SOEs), water sector development, and the enhancement of water, sanitation, and hygiene services. The Asian Development Bank (ADB) is contributing $540 million, while the World Bank is providing $400 million.
ADB Approves Funds for SOE Reforms and Sindh Projects
The ADB’s board has sanctioned two key projects. A $400 million results-based loan under the Accelerating SOE Transformation Programme will drive reforms in national highway infrastructure. This initiative aims to improve governance and optimize the performance of Pakistan’s commercial SOEs, vital for economic stability, according to ADB Country Director for Pakistan, Emma Fan.
Additionally, a $140 million concessional loan will support the Sindh Coastal Resilience Sector Project. This project seeks to bolster disaster resilience in the vulnerable coastal districts of Badin, Sujawal, and Thatta, protecting over 500,000 people and vast agricultural land. SindhNews.com has extensively covered the region’s vulnerability.
World Bank Backs Punjab’s Water and Sanitation Schemes
The World Bank’s $400 million commitment will fund the Punjab Inclusive Cities Programme. This initiative will revamp water supply networks, sewerage systems, and wastewater treatment plants across 16 secondary cities in Punjab. It also targets improved solid waste management services.
The program is designed to benefit approximately 4.5 million people with enhanced water and sanitation services, potentially reducing waterborne diseases and child stunting. This aligns with national development goals for improved public health and urban infrastructure.
These combined financial approvals from the ADB and World Bank represent a significant investment in Pakistan’s development, focusing on institutional reform, environmental resilience, and essential public services. The outcome is expected to yield tangible improvements in governance and the quality of life for millions of citizens.