ADB announces US $2.6 billion in assistance

The Asian Development Bank [ADB] is to release US $2.6 billion in assistance to Pakistan between 2004 and 2006, it was announced at the weekend following a high ranking meeting between ADB and Pakistani officials. "Our main focus is on poverty alleviation specialising in sectoral reforms, health, education and rural water supplies," ADB's country director for Pakistan, Marshuk Ali Shah told IRIN in the capital, Islamabad, on Monday. The consolidated package of 2.6 billion will be divided over three years, working out at US $850 million a year. "We have various strategic priorities, for example we have governance as a prime area of activity. Social sector development is another along with economic growth," he explained. Some 34 percent of Pakistan's population of 140 million lives below the poverty line, earning less than a dollar a day. The announcement was made after a meeting between the head of the ADB's South Asia department, Yoshihiro Iwasaki and the Pakistani Finance Minister, Shaukat Aziz on Sunday. In the year 2002, the ADB's assistance to Pakistan totalled US $1.14 billion. In that same year Pakistan bolstered its annual development plan with its main focus on poverty alleviation to US $2.3 billion from $2.12 billion. This brought the total development funding to the unprecedented level of about 4.2 percent of the Gross Domestic Product GDP). Commenting on the progress made by Pakistan's poverty alleviation programme introduced under the government of President Pervez Musharraf, Shah said: "They are doing quite well especially in the water projects. However, some projects are facing difficulties and delays, but this is expected in a country like Pakistan." In addition to this, the ADB is also keen to see improved sub-regional cooperation among countries in South and Central Asia and has two major road projects underway in the southern province of Baluchistan costing $150 million and in the North West Frontier Province [NWFP] costing $250 million. The purpose is to link Pakistan and Afghanistan to Central Asia. Asked whether security was of concern to the bank, he said: "As far as our road projects are concerned I think security is a variable issue and the ADB does not see any major security concerns as of now and it depends on other factors. At least if the basic infrastructure is there it will help to promote sub regional cooperation." Assistance is also being given to Islamabad to open the southern Arabian seaport of Gawadar, allowing access to Afghanistan's southern Chaman border with Pakistan. This port is likely to be operational next year. Other ADB initiatives in Central Asia include a feasibility study in the energy sector for the pipeline project between Turkmenistan, Afghanistan and Pakistan.