Amid an economic crisis fueled by political and geopolitical uncertainties, Pakistan received the highest amount of Asian Development Bank (ADB)-funded programs and projects in 2022.
As stated in the ADB Annual Report 2022, Pakistan secured $5.58 billion in loans from a total of $31.8 billion distributed among 40 countries.
Pakistan received $2.67 billion in concessional financing from the ADB in 2021. In its report, the Manila-based bank emphasized its timely response to emerging and ongoing crises in the Asia and Pacific region.
The ADB provided $2.2 billion in total through its countercyclical support facility to countries heavily affected by the food and energy crisis resulting from the Russian invasion of Ukraine and devastating floods in Pakistan. Furthermore, the ADB disbursed emergency assistance to Tonga and Bangladesh for disaster relief and refugee support, respectively.
The ADB pursued Energy Transition Mechanism (ETM) initiatives and climate-resilient agriculture projects across several countries, including Pakistan. It also committed $3.7 billion in 2022 to provide essential nutritional aid to vulnerable populations in Afghanistan, Pakistan, and Sri Lanka.
The report underscored the region’s vulnerability to climate change, as seen in the catastrophic floods in Pakistan that led to significant loss of life, property damage, and worsening economic conditions.
The ADB committed $6 billion in financial resources to Central and West Asia in 2022, including sovereign and non-sovereign financing. Following the devastating floods in Pakistan, the ADB quickly provided emergency assistance and a $449 million package for comprehensive flood support.
The ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE) programs contributed $2.1 billion during the year, helping Pakistan and other countries navigate the economic consequences of the Russian invasion of Ukraine and extreme flooding.
Through the BRACE program, the ADB offered Pakistan $1.5 billion and an additional $500 million in co-financing, assisting the government in addressing rising food prices and enhancing food security, employment, and social protection for the impoverished and vulnerable.
Furthermore, the ADB provided a $100 million loan to modernize secondary hospitals in Khyber-Pakhtunkhwa, aiming to improve women’s health and address gender-based violence. The bank also signed a $300 million loan to develop capital markets, promote private investment, and aid in mobilizing domestic resources in Pakistan.
Throughout 2022, the ADB continued to support financial institutions in seizing opportunities in green finance and women’s entrepreneurship. The bank funded research on the barriers faced by Pakistan’s financial institutions in lending to women for green initiatives and piloted a program in Papua New Guinea to identify solutions for women without credit histories to obtain loans.
