The Asian Development Bank (ADB) has agreed to provide at least $1.2bn per annum to Pakistan under a new country partnership strategy (CPS) to help improve infrastructure and create new jobs.
The funding, which will run through 2019, will be used by the country to upgrade its power transmission and distribution systems as also modernize infrastructure in the transport, agriculture, and urban services sectors.
Under the terms of the new CPS, ADB will collaborate with other development partners to help strengthen the regulatory environment in order to promote public-private partnerships.
ADB Pakistan Resident Mission country director Werner Liepach said: "The main challenge in Pakistan is to deliver higher, sustained, and inclusive growth to cut poverty and create productive jobs for the growing labor force.
"The thrust of the new partnership will be to support the government to improve connectivity, productivity and access to markets and public services."
Other sectors including energy, natural resources and rural development, water and other urban infrastructure and services, public sector management, as well as the finance sector will also benefit from the new financing package.
ADB said that its non-sovereign operations will target select investments in renewable power sources in a bid to boost energy security.
Image: ADB will help Pakistan upgrade power transmission and distribution systems. Photo: courtesy of Asian Development Bank.