Daily Times

Federal Minister for Finance and Revenue Shaukat Tarin has said that Asian Development Bank (ADB) has always been a source of support in pursuing reforms agenda and implementing various development projects for the country.

The finance minister said this during a meeting with ADB Vice President Shixin Chen on Monday.

Shixin Chen reaffirmed the ADB’s commitment to continue support for strengthening reform programmes and implementation of the country’s development agenda including fiscal management, building resilience and boosting competitiveness and development of the private sector. He appreciated and supported the efforts taken by the present government in social and economic sectors for improvement in the economy of Pakistan.

The finance minister acknowledged the long-standing partnership and firm commitment of the Asian Development Bank as a major partner for bringing essential reforms in priority areas including energy, fiscal & debt management and socio-economic development.

He gave an overview of the country’s economic situation and emphasised that the government is committed to introducing reforms in various sectors, in the face of various challenges, to address the long outstanding structural issues and to attain sustainable and inclusive growth.

The finance minister informed that the government has taken steps to improve the revenue collection through the broadening of the tax base, capturing retail sales, single-window operations as well as track and trace system.

The minister also shared steps taken to help the underprivileged segment of the society through the Kamyab Pakistan programme which, he said, would help them achieve self-sufficiency.

Separately, Shixin Chen called on Federal Minister for Economic Affairs Omar Ayub Khan and discussed the ADB’s technical & financial assistance for Pakistan including ongoing portfolio and priority areas for future interventions.

At present, 37 ADB-funded development projects worth $7.9 billion are under implementation across the country in energy, road & transport, agriculture, urban infrastructure and social sector. During the current fiscal year, ADB has disbursed $1.1 billion for various development projects and programmes.

The minister appreciated the ADB for its continued and enhanced financial assistance to the government. It was acknowledged that ADB has become the leading development partner of Pakistan in recent years.

The minister also acknowledged the ADB’s timely support for addressing health and socioeconomic challenges amid Covid-19 pandemic. ADB has provided over $1.3 billion for Covid-19 response including social protection, vaccination and budgetary support for fiscal stimulus.

The minister further highlighted that through the National Coordination Committee on Foreign Funded Projects, the EAD has significantly improved physical progress and disbursement against the ongoing projects by removing major bottlenecks including delays in land acquisition, right of way issues and hiring of project staff.

The minister further shared that the Economic Affairs Division is going to implement a triad model i.e. physical progress verification by satellites, financial tracking and use of Gantt Charts for efficient monitoring and smooth implementation of the projects.

The minister, while appreciating the ADB’s continued support to Pakistan, assured the ADB vice president that the government is committed to completing structural reforms in multiple areas. Both sides discussed new reform areas for ADB’s assistance including domestic resource mobilisation, climate change and public-private partnerships.

Domestic resource mobilisation would help the government create fiscal space through enhanced revenue collection and overcome the challenge of fiscal deficit. Furthermore, it was agreed to enhance investments in the road sector, agriculture, renewable energy, digital connectivity, vocational education and social sector.

Shixin Chen acknowledged the government’s efforts for reforms in trade, energy and capital markets. He also commended the GoP’s successful response against Covid-19 pandemic including mass vaccination programme, social protection and relief measures for general public, agriculture & industry.

He further appreciated that ADB’s disbursement for development projects has increased by 25 percent in a year due to continuous efforts and follow-ups of EAD and ADB teams. In this regard, he commended the minister for economic affairs for his proactive approach and dedicated efforts for reviewing the progress of projects on a regular basis.