Latest news with #CountryPartnershipStrategy
Business Recorder
7 days ago
- Business
- Business Recorder
NA body informed: Govt decides to launch M-6 project on a priority basis
ISLAMABAD: The National Assembly Standing Committee on Economic Affairs was informed on Tuesday that government has decided to launch the Motorway (M6) on a priority basis in the development programme of the next fiscal year. Officials from the Ministry of Economic Affairs informed the committee that the ministry had proposed foreign financing of Rs500 billion. The ministry estimates that a rupee cover will be required for financing of Rs400 billion. The meeting of the Standing Committee was held under the chairmanship of Atif Khan, which was informed that negotiations are underway with the Islamic Development Bank and the Saudi Fund for financing the motorway. Secretary Economic Affairs Division Dr Kazim Niaz said that launching the M6 Motorway is currently the government's top priority. The Islamic Development Bank will provide $500 million for two sections of the M6 Motorway. Talks are being held with the OPEC Fund and the Saudi Fund for Development for other sections. Talks are also being held with the Asian Development Bank (ADB). It is hoped that the Saudi Fund for Development will take up one section. Committee member Mirza Ikhtiar Baig said that the development of Karachi and Sindh depends on these two projects. The real purpose of building the motorway will be fulfilled by connecting the motorway with the port. The secretary Economic Affairs Division said that a new Country Partnership Strategy is being prepared with the Asian Development Bank. The committee was informed that important projects will be completed in the next fiscal year to improve the electricity transmission system. The committee was also informed that $460 million financing was available for Khyber Pakhtunkhwa Economic Corridor. The provincial government has to take several steps to get funding from the World Bank. This is an important project, the provincial government should resolve all issues quickly, secretary Economic Affairs Division added. In the last three years, short-term debt has been reduced and long-term debt has increased, he added. As the country's economic situation has improved, it has also become easier to obtain loans and set terms. Commercial loans are available for short periods and at high interest rates. In the last three years, the debt-to-GDP ratio has decreased to 67 percent, the secretary EAD added. The committee postponed the briefing on development projects in the absence of the planning minister and planning secretary. The Power Division has 82 development projects, said Special Secretary Power Division Arshad Majeed. Of these, 77 percent of the financing is allocated for transmission projects. Most of the projects of the Power Division are being carried out by NTDC, said Majeed. We thought that power generation would increase, said NTDC officials, adding that due to solarisation, the demand for power has decreased in the last five years. Copyright Business Recorder, 2025
Arab News
25-04-2025
- Business
- Arab News
Pakistan seeks ADB's credit guarantee for yuan-denominated Panda bond issue
KARACHI: Pakistan has sought support of the Asian Development Bank (ADB) for the issuance of its yuan-denominated Panda bond, the Pakistani finance ministry said on Thursday. The statement came after Pakistan Finance Minister Muhammad Aurangzeb's meeting with ADB President Masato Kanda in Washington D.C., wherein the two sides discussed their Country Partnership Strategy 2026-2030 and budgetary support. Pakistan plans to launch yuan-denominated Panda bonds in June to enhance its presence in Chinese capital markets and raise approximately $200 million from Chinese investors, following upgrades in its sovereign ratings by major credit agencies. Islamabad is being advised on the issuance of Panda bonds by the China International Capital Corporation, a partially state-owned financial services company. However, the latest figure shared in Jan. is lower than the $300 million targeted by Pakistan last year. 'The minister requested ADB's support for a partial credit guarantee for the issuance of Pakistan's Panda bond,' the Pakistani finance ministry said. The development comes more than a week after global ratings agency Fitch upgraded Pakistan's foreign currency credit rating to 'B-' from 'CCC+', citing increased confidence in the country's progress on narrowing its budget deficits. The upgrade also reflects confidence that the country would implement structural reforms, supporting its International Monetary Fund (IMF) program performance and funding availability, according to Fitch. Pakistan's economy had been teetering on the brink of default ever since inflation rose to a record high in May 2023 and reserves started shrinking, but has seen some respite thanks in part to a $7 billion bailout program from the IMF. Aurangzeb and the ADB president also discussed the Bank's Country Partnership Strategy 2026-2030 for Pakistan and agreed to fast-track the project's execution, according to the Pakistani finance ministry. 'He also expressed hope that budgetary support from ADB would materialize this year and assured the participation of Pakistan's delegation in the CAREC (Central Asia Regional Economic Cooperation Program) meeting scheduled for November 2025,' it added. Pakistan is a founding member of the ADB. Since 1966, the bank has committed over $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth in Pakistan and improve the country's infrastructure, energy and food security, transport networks, and social services.
Zawya
10-04-2025
- Business
- Zawya
Arab Fund launches a five-year country partnership strategy with Jordan
The Country Strategy will be supported by a financing package of $690 million The Joint Declaration for the launching of the Country Partnership Strategy (CPS) for Jordan (2025-2029) along with a loan agreement were signed on the sidelines of the joint annual meetings of Arab Financial Institutions in Kuwait. The joint annual meetings were held under the auspices of H.E. Prime Minister of Kuwait Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, and in the presence of H.E. Sheikh Fahad Yousef Saud Al-Sabah, Acting Prime Minister and Minister of Interior, who delivered the opening remarks, and H.E. Eng. Noora Al-Fassam, Minister of Finance, and Minister of State for Economic Affairs and Investments. Kuwait – The Arab Fund for Economic and Social Development signed today a Joint Declaration with the Hashemite Kingdom of Jordan, represented by H.E. Zeina Toukan, Minister of Planning and International Cooperation, marking the launch of Arab Fund's 1st Country Partnership Strategy (CPS) to support Jordan's economic resilience and promote inclusive growth. A KWD21 million loan agreement was signed marking the start of the Country Strategy. The CPS encompasses a financing package of KWD211 million (about $690.2 million), that may increase to support Jordan's resilience in response to unforeseen economic shocks. In addition, the Arab Fund will leverage its partnerships with other development partners, mobilizing more financial resources to implement the strategy. Badr Al-Saad, Director General and Chairman of the Board of the Arab Fund for Economic and Social Development, stated that the strategic partnership with the Hashemite Kingdom of Jordan marks a significant milestone in the Fund's ongoing commitment to fostering sustainable development across the Arab world. 'By focusing on key areas such as infrastructure, education, and private sector growth, we aim to contribute to inclusive and sustainable economic progress, aligning with our vision for a prosperous and interconnected future', he added. Country Partnership Strategy aims to strengthen development relations between the two parties and respond to Jordan's needs and priorities based on the Economic Modernization Vision 2033. It will focus on two main pillars: Improving social services — including water supply infrastructure, improving production of renewable energy and export of electricity, and improving TVET education. This will support enhancing access to quality social services through public-private partnerships, particularly in health and early childhood education, and developing digital infrastructure and boosting digital skills needed for the digital economy among youth and women. Unlocking the potential of the private sector through investment in high-value industries and support for SMEs and startups. This aims to unleash private sector potential through impactful investments in targeted sectors, as well as financing SMEs and innovative startups and exports. The loan from the Arab Fund will finance constructing an onshore gasification unit to convert natural gas from liquid to gas and its connection to gas pipelines, reinforcing Jordan's resilience against energy supply disruptions. The project is expected to be completed by the end of 2027. The CPS will support Jordan in narrowing the gaps across six sustainable development Goals: SDG 3: Good Health and Wellbeing; SDG 4: Quality Education; SDG 6: Clean water and sanitation; SDG 7: Affordable and Clean Energy; SDG 8: Decent Work and Economic Growth and SDG9: Industry innovation and infrastructure. The Arab Fund has been a long stand supporter to Jordan since the establishment of the Fund in 1974, providing 817.1 million Kuwaiti Dinars (approximately $2.67 billion) and covering key sectors such as energy and electricity, agriculture and rural development, social services, as well as transport, water and sanitation, industry, and mining.
