MANILA: The Asian Development Bank (ADB) has endorsed a new 5-year countrypartnership strategy (CPS) to help restore economic stability and growth inPakistan by enhancing people’s well-being and expanding economicopportunities as the country works to overcome the Covid-19 pandemic,according to a report published by the regional development bank onWednesday.
According to the report, the pandemic has interrupted the macroeconomicrecovery in Pakistan, resulting in a sharp contraction in growth, a rise inpublic expenditures, and a loosening of monetary policy to mitigate thehealth and economic impacts.
“As with many countries in the region, Covid-19 has affected Pakistan,revealing the extent to which the population is exposed to economic andsocial vulnerabilities,” said ADB Director General for Central and WestAsia Eugene Zhukov. “The new CPS 2021–2025 will build greater resilience ofthe population and help tackle Pakistan’s persistent structural challenges.”
The report states that ADB’s assistance would prioritise support for threeinterlinked pillars: improving economic management, building resiliencethrough human capital development and social protection, and boostingcompetitiveness and private sector development.
In this regard, ADB has committed to supporting macroeconomic stabilisationin Pakistan and maintain support for reforms to improve the country’s tradeprospects and external positions whereas it will also continue to helpimprove the energy sector through reforms and sovereign and nonsovereigninvestments, and also continue deepening and diversifying Pakistan’sfinancial markets to promote investment, growth, and private sectordevelopment.
Under the CPS, ADB will expand investments and help accelerate reforms insecondary education and technical and vocational education and training.ADB will address the challenge of out-of-school children and targetchildren from poor and vulnerable households, bolster evidence-based policyformulation through a newly established policy research unit, improvehealth care and continue to help manage public health issues, including theCovid-19 pandemic.
To boost competitiveness and private sector development, ADB will focus onbuilding livable cities, promoting renewable energy and energy efficiency,and investing in rural infrastructure. ADB will seek to strengthenagricultural value chains, improve connectivity, and increase access tofinance.
“The government has expressed its strong commitment to the ongoingInternational Monetary Fund Extended Fund Facility programme,” said ADBCountry Director for Pakistan Xiaohong Yang. “The CPS places a strong focuson combining reforms with physical and social investments to improvesustainability and generate lasting development impact.”
ADB will play a pivotal role in supporting Pakistan to attract privatesector investment in renewable energy, small and medium-sized enterprises,trade, and supply chain finance. Through its recently issued local currencyKarakoram bondslink,ADB expects to expand opportunities for financing priority sector projectsin which the bank was not previously present, including agribusiness andsocial sectors.
In addition, ADB will explore more public-private partnership opportunitiesfor Pakistan.
Source:link