The Asian Development Bank (ADB) would extend $150 million in loans to the Punjab province, as part of a second phase of support for public policy reforms which are designed to boost inclusive growth and the delivery of services.
The funds for subprogram 2 of the Punjab Government Efficiency Improvement Programme include $75 million from ADB's ordinary capital resources (OCR) and a further $75 million from its concessional Asian Development Fund (ADF).
The new loans will support reforms that strengthen public financial management through the introduction of output-based budgeting; improve the efficiency and accountability of the civil service; boost the affordability and sustainability of the public pension system; and promote public-private partnerships for infrastructure and social services.
A key element of the second phase of the programme is the introduction of results-based management for the first time in Pakistan. The programme also supports allocation of more resources for gender reforms and capacity building to address current gender inequality in key sectors.
The OCR loan has a 15-year term with a grace period of 3 years, and interest charges set according to ADB's LIBOR-based lending facility. The ADF loan has a 24-year term with an 8-year grace period carrying an annual 1.0 per cent interest charge, rising to 1.5 per cent for the balance of the period.
THE NEWS | ISLAMABAD | Fri, Sep 18, 2009 |