ISLAMABAD: The Islamic Development Bank (IDB) is all set to approve $600 million in project financing for flood-affected areas in Pakistan out of which the Chashma Right Bank Canal in Khyber Pakhtunkhwa will be financed.

“There are $4 billion loans for flood-affected areas at the advanced stage from different multilateral and bilateral donors and disbursement of various projects will be kick-started in the next fiscal year,” top official sources confirmed while talking to a select group of reporters here on Friday. They said the World Bank approved $1.7 billion for projects in flood-affected areas while the Asian Development Bank was providing a $600 million loan. Pakistan is expecting $2.7 billion from multilateral and bilateral creditors. Besides, there was another $600 million loan from the IDB. “In totality, there is $4 billion disbursement of loans, which is at the advanced stage,” the sources said and added that these donor-funded projects would be executed in different phases.

The Planning Commission’s Central Development Working Party (CDWP) cleared Rs 194 billion for the National Flood Response Plan and projects for rehabilitation in flood-hit areas would be executed in all the four provinces. Under the Flood Response Plan, a major chunk of resources to the tune of Rs 51 billion would be utilized in Sindh and Rs 47 billion in Balochistan, KP and Punjab. It was stated that an amount of Rs 132 billion had been allocated for the development of Balochistan in 2023-24.

Secretary Planning Zafar Ali Shah has said despite financial constraints, the Planning Ministry allocated Rs 132 billion under the Public Sector Development Programme (PSDP) in the budget. He emphasized the progress achieved through China-Pakistan Economic Corridor (CPEC) projects, particularly in Gwadar. The government, he said, completed projects related to water and electricity. Gwadar’s major CPEC projects, such as the Gwadar Power Plant, distribution of 2,000 boat engines to Gwadar fishermen, Khuzdar-Panjgur Transmission Line (via Nag-Basima) connecting Makran with the national grid, New Gwadar International Airport Project, China-Pak Friendship Hospital, China-Pak Technical and Vocational Institute, Gwadar East-bay Expressway Project, Gwadar Free Zone and Gwadar Port, are poised to transform the region. He said the supply of 100mw electricity from Iran would significantly improve the lives and businesses of the people of Gwadar.

He said projects worth Rs 80 billion were initiated under the prime minister’s initiative including the Youth Loan Scheme and scholarships and support for startups. Regarding the utilization of PSDP funds in 2022-23, he said that out of allocated Rs 727 billion, the Planning Ministry released Rs 724 billion. Additionally, despite financial constraints, the PSDP portfolio has been increased from Rs 700 billion to Rs 1,150 billion for 2023-24. He also highlighted other projects such as addressing the out-of-school children issue and water projects in Skardu.