ADB seeks 4 months for financing Diamir Bhasha dam

ISLAMABAD: The Asian Development Bank (ADB) agreed to fund energy, communication and infrastructure development projects but sought four months time for financing Diamir Bhasha dam project.

According to minutes of a meeting between ADB Country Director Werner Liepach with Finance Minister Ishaq Dar, the former claimed that the bank was evaluating Pakistan’s request for financial support to the project.

Mr Leipach informed the Minister that as compared to the past years, currently cooperation between the ADB and Pakistan had been much more extensive.

The year 2014 saw the record disbursement of $900 million for different development projects including budgetary support whereas it was around $300 million in the past years.

Leipach said that as per our commitment for facilitating infrastructure development and energy related projects we shall be supporting projects like M4, E35 and regional development projects like CAREC and TAPI.

ADB country director also discussed the strategy of ADB for Pakistan in the next year which will be approved in the annual meeting to be held in May in Baku.

Occasion, the minister while appreciating the ADB’s contribution, impressed upon Werner to enhance the budgetary support.

The finance minister informed Leipach that for the purpose of arranging finances for infrastructure development projects we have already created an SPV. IPDF shall soon actively start its work.

The Minister further said with 15pc growth in the workers’ remittances we shall be better able to manage our balance of payment and divert more finances to development of the country.

Meanwhile, the Finance Minister stressed the need for strengthening the capacity of Implementation and Economic Reforms Unit (IERU) of the Finance Division to contribute towards implementation of economic reforms.

The minister held a meeting with IERU here, which among others was attended by Finance Secretary, senior officers of Finance Division, Director General IERU and IERU officers. He emphasized that IERU was playing a pivotal role in implementation of economic reform agenda of the government to help improve economic conditions.

On the occasion, IERU Dr Khaqan Hassan Najeeb apprised the Finance Minister about the current work being done at IERU.