21 °C Prince George's County, US
April 12, 2021

ADB to Provide $300 Million Loan to Improve Public Sector Enterprises

The Asian Development Bank (ABD) will provide a loan of $300 million to Pakistan to help the government improve the performance of public sector enterprises which are causing loss of billions of rupees to the national exchequer.

The loan agreement signed recently in Islamabad will cover the second phase of the Public Sector Enterprises Reform Program by enabling the government to sustain reform initiatives by improving their corporate governance and accountability, and reducing their contingent liabilities.

To facilitate GOP’s reform initiatives, ADB approved Subprogram-1 of the Programmatic Approach in June 2016. Subprogram-2 will carry forward all the reforms initiated under Subprogram-1 to its logical conclusion.

Some of the reforms already initiated under subprogram 1, by their very nature, have a long-term implementation cycle. These reforms will need to be carried forward. A continued assistance for such reforms would consolidate and sustain gains made towards better performance of the federal PSEs.

An IMF report last year revealed that three public sector entities – the Pakistan International Airlines, Pakistan Railways and Pakistan Steel Mills – alone have caused over 700 billion rupees in losses to the national kitty.

In addition to that, power sector companies in the public sector have accumulated debt of about 660 billion rupees, more than half of it happening in the last three years.

 

Related articles

U.S. Launches Credit Program for Small-, Medium-Size Pakistani Businesses

Islamabad – The U.S. government has launched a program to provide credit to qualified micro, small and medium-sized business in Pakistan. The U.S.-Pakistan Partnership for Access to Credit Program was inaugurated by Donald Larry Sampler, Assistant to the Administrator in the Office of Afghanistan and Pakistan Affairs at the USAID, says a statement posted on […]

State Personal Income in Jan-March Grows 0.9%, Falls in Four States

Growth in state personal income, sum of net earnings from salary, property and government benefits, slowed to 0.9 percent on average in the first quarter of 2015 from 1.1 percent in the preceding quarter, due to fall in earnings in farm and mining, according to latest Commerce Department estimates. Personal income, measured before the deduction […]