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‘Rising growth rate vindicates stabilisation policy for Pak’

‘Rising growth rate vindicates  stabilisation policy for Pak’

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FRANKFURT: The Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) signed a Memorandum of Understanding (MoU) on Monday to co-finance mutually-agreed projects. Both the lenders have selected Pakistan as the destination for a $300 million collective project to construct a road in Punjab from Shorkot to Khanewal.
AIIB’s contribution to the project will be $100 million and the remaining will be provided by the ADB, other donors and the Government of Pakistan, reports the Dawn.
“Pakistan’s road project was more mature so it was selected first. The project is a symbolic proof of our common commitment to improve connectivity in the region,” said ADB President Takehiko Nakao at the opening press conference of the three-day 49th annual meeting of the bank here on Monday.
To a query by Dawn on the policy thrust of ‘growth-stifling stabilisation’ in developing Asia at a time when Europe is debating helicopter money, Mr Nakao’s response was something to the effect of ‘to each according to their need’.
“The low level of local resource mobilisation in countries such as Pakistan necessitates it. The baseline such as balance of payments and trade has to be fixed to financially empower the government to increase social spending to materialise the vision of inclusive sustainable growth,” he said.
He said the strategy seems to be delivering in Pakistan as security and macroeconomic stability have improved and growth rate is picking up. “The country has turned a corner as from the verge of balance of payment meltdown three years ago, it is poised to register a decade-high growth rate in 2016 which is expected to further escalate,” he said.
To another question related to the decision of moving the ADB’s annual meetings outside Asia, he hammered the benefits of engaging with Europe for achieving shared development goals. “In the past, ADB did organise meetings at different venues in and outside Asia”.
Earlier, Asian Development Bank (ADB) President Takehiko Nakao and Asian Infrastructure Investment Bank (AIIB) President Jin Liqun signed the memorandum of understanding (MoU) for mutual cooperation.