ADB provides US $300 million to Pakistan for PSEs reforms

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ISLAMABAD, June 28 (APP): Asian Development Bank (ADB) would provide US $300 million to Pakistan for improving the performance of Public Sector Enterprises (PSEs) especially the railways sector.

Agreement to this effect was signed by Triq Bajwa Secretary Economic Affairs Division (EAD) and Werner E.Liepach Country Director ADB here. Minister for Finance and Economic Affairs Senator Muhammad Ishaq Dar also witnessed the signing ceremony.

According to the agreement, the PSEs reforms programme would support the efforts of the government of Pakistan to improve the performance of PSEs, especially the railways sector.

The programme has four outputs: (i) Restructuring of selected public sector enterprises, especially Railways, establishing a conditionality framework for fiscal transfers to public sector enterprises, enhancing economic regulatory regimes and support privatization commission in its work.

The programme would help improve corporate governance and accountability of the PSEs, besides facilitating and providing fiscal space for development projects by improving public resource management.

Speaking on the occasion, Finance Minister Ishaq Dar thanked ADB for providing vital support to Pakistan, particularly for energy and public sectors reform programs.

He assured Pakistan’s commitment to scale up practices for improving the performance of the PSEs.

In his remarks on the occasion, the Country Director ADB, assured government of Pakistan of its continued support and appreciated the efforts for taking measures to revamp the economy and steer the process of development in Pakistan.

He also mentioned that sustained reforms would help to cope with energy shortage and improve the efficiency of public sector enterprises.