Japan gives $260m loan for power sector: Dawn

ISLAMABAD: Japan has extended a soft loan of $260 million (23.3 billion yen) to Pakistan for the National Transmission Lines and Grid Stations Strengthening Project, which will cost Rs29.339 billion.

This is the first Japanese loan under the Official Development Assistance (ODA) based on the Pakistan Donors’ Conference hosted by Japanese government in April 2009 where a maximum of $1 billion in aid was pledged over a period of next two years.

Notes to this effect were signed and exchanged between Ambassador of Japan Chihiro Atsumi and Secretary Economic Affairs Division Sibtain Fazal Halim here on Wednesday.

The exchange of notes was followed by the signing of the loan agreement by EAD Additional Secretary Hassan Nawaz Tarar and the Chief Representative of Japan International Cooperation Agency (JICA) in Pakistan, Tomoharu Otake.

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Pakistan may get extra $4.5 bn from IMF: The News

By Mehtab Haider

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have discussed options for additional funding of $4.5 billion for Islamabad and the final decision will be taken in review talks in Dubai scheduled from May 4 to 11, a senior official confirmed to The News on Wednesday.

The official, who was part of Pakistani delegation during the recent annual spring meeting of the IMF and the World Bank, told this scribe on late Tuesday night that Pakistan and the IMF had discussed options to jack up additional funding for Islamabad up to $12.1 billion from the existing $7.6 billion under a 23-month Standby Arrangement (SBA) program. When contacted Additional Finance Secretary, Asif Bajwa, who is also official spokesman, on Wednesday confirmed that the government had not yet formally approached the IMF on the issue of additional funding from the Fund.

An IMF official also confirmed that the government had not yet officially requested the Fund for additional funding. However, the sources said the IMF funding is meant for Balance of Payment (BoP) support and if the government decides to get additional funds, it will help the State Bank of Pakistan (SBP) to improve its foreign currency reserves position. “The government will put additional funding into the foreign currency reserves which will help to improve confidence of investors for having increased foreign currency reserves,” added the official.

Though the Friends of Democratic Pakistan (FoDP) had pledged $5.28 billion during Tokyo’s conference translating pledges into a reality was altogether a different matter. If these pledges are actualised, then Pakistan’s budgetary gap for the next two years can be filled.

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Pakistan, IDB likely to finalise 3-year financial package worth $577m: Daily Times

By Ijaz Kakakhel

ISLAMABAD: Pakistan and Islamic Development Bank (IDB) are expected to finalise the modalities of three years rolling financing plan worth $577 million for the year 2010-2012 today (Tuesday), sources told Daily Times here on Monday.

In this regard the country mission of Islamic Development Bank will hold meeting with high officials of Pakistan. The meeting is likely to finalise the modalities of the financing mode and their proper implementation. The three years rolling plan includes financing of Neelum Jhelum Hydropower Project worth $360 million, NUST Development Project $57 million, Modernisation of signalling system $130 million and $30 million are for Diamer Bhasha Dam.

The sources further said that country dialogue mission of the IDB visited Pakistan in February to understand country dialogue assumed at clearly aligning the banks operation in Pakistan.

During the visit the Mission held meeting with concerned inistries/divisions/departments.

During the meeting the IDB agreed provide financing to Pakistan for National Trade Corridor in collaboration with Asian Development Bank (ADB). The IDB agreed to consider providing a loan for the Kharan and Wadhuk projects in Balochistan for an indicative amount of $15 million. The mission indicated that the bank was willing to be a part of any viable financing arrangement that desired for Diamer Bhasha Dam.

The bank informed the government that a country programming mission would visit Pakistan in second half of 2009 to firm up the projects in pipeline for the year 2010 to 2012 period and agreed on the volumes and modes of financing in live with the above understanding.

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£480m support package for Pakistan: Press Association

Details of a £480 million support package for the Pakistani government have been revealed at a Scottish mosque.

Douglas Alexander, the UK international development secretary, said the money is intended to help increase security in border regions and focus on education and health.

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ADB approves $300 mln loan to Pakistan: Reuters

ISLAMABAD, Dec 11 (Reuters) - The Asian Development Bank will extend $300 million in loans to help Pakistan implement programmes aimed at reducing poverty and improving the health of women and infants, the bank said in a statement on Thursday.

The ADB will provide $100 million each to three of Pakistan's provinces -- Punjab, Baluchistan and Sindh."The programme could potentially save the lives of up to 11,000 women and 235,000 infants by 2015 compared to a scenario without such support," said Rie Hiraoka, senior social sector specialist for ADB's Central and West Asia department.The statement did not say when the loans would be disbursed.Like many developing economies, Pakistan has been hit hard by rising fuel and food prices and inflation is at its highest since the 1970s.

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