According to the latest fact sheet released by the Asian Development Bank (ADB), the outstanding balances and undisbursed commitments of non-sovereign transactions in Pakistan amounted to $242.48 million by the end of 2022.
In the same year, ADB’s commitments in non-sovereign loans, equity investments, and guarantees from its own funds totaled $1.1 billion across 37 transactions in economic and social infrastructure, the finance sector, and agribusiness.
Since 1993, non-sovereign co-financing reached $13.38 billion for 24 investment projects, while sovereign co-financing amounted to $5.13 billion for 54 investment projects and $107.87 million for 65 technical assistance projects since 1973.
In 2022, Pakistan received a $500 million loan co-financing from the Asian Infrastructure Investment Bank for the Building Resilience with Active Countercyclical Expenditures Programme.
However, the country continues to face significant economic challenges from factors such as floods, the Covid-19 pandemic, security issues, structural risks, and adverse external shocks.
Project implementation in Pakistan is impacted by uncertainties and institutional factors, including land acquisition procedures, procurement delays due to restrictions, and price fluctuations affecting the import of construction materials.
Nevertheless, tripartite portfolio review meetings among ADB, the government, and executing agencies have helped address project implementation issues.
To improve macroeconomic recovery and stability, it is crucial for Pakistan to focus on fiscal consolidation and policy reforms, including broadening the tax base and improving the business environment.
Reforms should also aim to promote high value-added exports, expand social spending, strengthen the energy sector’s financial and technical sustainability, and implement structural changes that enhance institutions and generate employment opportunities.
Looking ahead, ADB will continue supporting Pakistan in its post-flood reconstruction and rehabilitation efforts. Key priorities include enhancing economic management, building resilience, fostering competitiveness, and promoting private sector development.