By Sajid Irfan

The disbursement of $1.5 billion loan by the Asian Development Bank (ADB) will help Pakistan tackle, to a great extent, the challenges posed by the flood devastation.

An official of the Benazir Income Support Programme (BISP) told WealthPK that the loan was meant to promote social protection, food security and employment opportunities for flood victims.

“The disbursement will protect Pakistan from external shocks such as fuel price increases due to the Ukraine crisis, as well as from climate change. The programme will help the government manage the impacts of high prices, increasing food insecurity, slowing business activity, and reducing income for vulnerable groups, many of whom are also reeling from the devastating floods,” he explained.

He said since 1966, the Manila-based lending agency had committed more than $36 billion to promoting inclusive economic growth and improving the country’s infrastructure, energy and food security, transport networks, and urban and social services.

“ADB’s financing will provide the fiscal space needed by the government to implement its countercyclical development expenditure package, which is designed to target the poorest families in Pakistan who are often disproportionately affected in times of crisis. The government’s support includes specific measures to promote gender empowerment and climate change adaptation, which have become even more relevant in light of the recent floods,” he said. 

The BISP official said ADB’s $1.5 billion countercyclical support was part of a significant response package to support people, livelihoods, and infrastructure in Pakistan. “This is in the wake of the recent floods which have affected over 33 million people and caused extensive damage to infrastructure and agriculture.”

He said that this assistance would help expand the number of families receiving cash transfers from 7.9 million to 9 million. “It will also increase the number of children enrolled in primary and secondary schools, and enhance geographical coverage of health services and nutritional supplies. Using conditional cash transfers, the programme will support the implementation of Pakistan's national social protection and poverty reduction strategy.” 

“Pakistan is prone to the impacts of climate change and natural hazards, including floods, heat waves, and droughts, which have a disproportionate impact on the poor and vulnerable. By leveraging ADB resources for climate adaptation, the programme will help identify and integrate appropriate climate resilience measures. This includes vulnerability mapping and early warning systems,” he added.

The BISP official told WealthPK that the programme would also support improvements in implementation and fiduciary capacity for Pakistan’s social protection initiatives. “This will build on previous ADB support to further improve grievance redress, risk management, financial management, procurement, monitoring and evaluation, and management information systems.”

“This programme incentivises parents to send their children to schools, particularly girls, and will help to provide specialised nutritious food and conditional cash transfers to children and mothers in the districts that most need it,” he added.

Credit : Independent News Pakistan-WealthPk