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ADB funding 15 private sectors project

ISLAMABAD: Asian Development Bank (ADB) has currently 15 active private sector projects in Pakistan with investment in both debt and equity instruments.

Pakistan is a major recipient of private sector assistance from ADB and bank's direct disbursements to Pakistani companies exceed $250 million to-date, sources at ADB resident mission here said on Friday.

The sectoral spread of these investments, sources said is quite wide and includes companies operating in such areas as financial services, leasing investment banking, venture capital, manufacturing, engineering, cement, infrastructure and power generation.

While private sector assistance is on commercial terms, ADB's role as a catalyst development always remains in the forefront, sources said adding, this is evidenced by, amongst others, ADB acting as lender of record for co-financing facilities provided to Pakistani borrowers.

The bank commenced its private sector operations in Pakistan in the early 1980s, sources maintained, adding: "ADB currently has 15 active private sector projects in the country and has invested in both debt and equity instruments."

Environmental and social impacts of the projects are considered as important as their economic and financial viability, sources continued.

The more recent shift in ADB's principal focus is geared to poverty alleviation and all prospective private sector projects are now needed to provide convincing evidence of how they contribute significantly towards poverty reduction, sources stated.

Over the years the bank has also provided assistance for a number of farm-to-market and rural roads projects in Pakistan, sources said. APP