ISLAMABAD: The Annual Report 2010 issued by the Asian Development Bank (ADB) has pointed out that 19.4 percent loans disbursed to Pakistan are at risk as measured by the end of 2010.
The report has highlighted that ADB has approved loans worth $20.894 billion and disbursed to Pakistan loans worth $16.217 billion by 2010 end. The risk associated with loans provided to Pakistan was higher and measured at 21.4 percent in 2009. However, this risk has decreased from 21.4 percent in 2009 to 19.4 percent loans provided by ADB in 2010 are at risk. As against the commitment of $388.3 million in loans for Pakistan in 2010, the ADB disbursed $799.1 million in loans to the country in 2010.
ADB has committed providing Pakistan loans worth $1.178 billion in 2009 and disbursements have been recorded at $1.093 billion in 2009. Loan disbursements to Pakistan have recorded a decrease of 26.9 percent in 2010 with total disbursement at $799.1 million as against the disbursement of $1.093 billion in 2009.
“ADB provided co-financing loans worth $242.5 billion, grants $116.5 million and sovereign and non-sovereign grants $3 million to Pakistan in 2010,” the report added. ADB statement said that the bank approved $17.51 billion in financing operations last year, according to ADB’s 2010 annual report released ahead of the 44th annual meeting to be held from 3 to 6 May in Ha Noi, Vietnam.
Of the total financing of $17.51 billion approved by the ADB, $15.50 billion was for investment support, $1.68 billion was for policy-based support, and $327 million was for technical assistance. In addition, ADB’s ongoing Trade Finance Programme supported $2.77 billion in trade. “As the region moves beyond economic recovery to sustained growth, it must ensure that the evolving growth paradigm becomes more inclusive to benefit as many people as possible,” ADB President Haruhiko Kuroda said in the report.
According to an ADB study, 14 out of 20 developing Asian economies saw their Gini coefficient increase in recent years as economic growth accelerated.