By DPA
Manila : The Asian Development Bank (ADB) said Tuesday it will provide up to $1.16 billion in loans for expansion of roads and public sector reforms in Pakistan.
The Manila-based bank said up to $900 million would be used to rehabilitate and expand key sections of the country’s main highway network, including upgrading the highway from Karachi to Peshawar City.
“With trade flows concentrated along one major north-south transport corridor, this program will make road traffic more efficient and reduce transport costs,” Cleo Kawawaki, ADB senior investment specialist, said.
“Cheaper transport cost will increase private sector productivity, which will help deepen and diversify the industrial base, both of which are necessary to provide jobs for the growing population,” she added.
ADB will also provide an additional $260.65 million in loans and grants to assist Punjab province pursue reforms to improve efficiency in the public sector.
Punjab is Pakistan’s most-populous province and has a poverty rate of more than 20 per cent, the bank said.
Sean O’Sullivan, ADB’s deputy director general for central and West Asia department, said the two projects are expected to further boost Pakistan’s growth.
“Both these programmes will boost the economy, which generates new jobs and reduces poverty,” he said.