The Asian Development Bank (ADB) has refused to give an extension of the loan signing period as the Punjab government failed to gather support for building the next phase of the Greater Thal Canal project within the stipulated deadline, The News International reported.
In his letter dated December 6, 2022, the ADB’s Director-General, Central and West Asia Department, said that the bank’s inability to extend the loan signing period. The loan signing period is due to expire on December 13. The “Loan 4167–PAK: Greater Thal Canal Irrigation Project” worth USD 200 million was due to be spent on constructing the next phase of the GTC Project in Punjab.
Dr Kazim Niaz, Secretary, Ministry of Economic Affairs, in a letter dated December 2, requested ADB to consider a six-month extension of the loan signing period. Yevgeniy Zhukov, DG, ADB, said that the loan will automatically lapse on December 13, unless the loan and project agreements are signed within that period. He stated that they appreciate the efforts of government to reach a consensus on implementing the GTC project.
Yevgeniy Zhukov recognised the challenges in reaching a consensus for the project. He said that they consider that the process needs further consultation of higher authorities. He stressed that it is “increasingly evident” that the implementation of the project will require more sensitive dialogue within the country keeping in view the “evolving political environment.”
“We recognise the challenges in building a consensus for this project related to sensitive technical aspects. Given the flood response priority for Pakistan and ADB as a leading partner, we consider it may be ineffective to extend the loan signing period. This is also because there is no certainty that a consensus will be achieved within the next six months,” The News International quoted Yevgeniy Zhukov as saying.
The sources told The News International that the lapse of the loan was a big setback to the irrigation sector. Pakistan’s agriculture has already reached saturation point and they require more area for cultivation to produce a greater volume of food. The Greater Thal Canal Project would have helped in increasing the area for farming. According to sources, Punjab, the main stakeholder in this project, did not fight the case vigorously.
According to The News International report, the sources stressed that the entire project will be thrown off track as everything will have to be started again after the loan signing period expires. It will cause delays and cost escalation and put an additional burden on the province.
As per the news report, the proposed loan programme has been aimed at increasing food security and rural economic growth in Punjab, as per The News International report. The loan programme will enhance agricultural production by setting up a new seasonal irrigation system in the Bhakkar, Jhang, Khushab, and Layyah districts of Punjab. The Greater Thal Canal Irrigation scheme will change around 704,000 hectares of unproductive land to irrigated land.
Meanwhile, Punjab Chief Minister Chaudhry Pervaiz Elahi has expressed regret that Pakistan Prime Minister Shehbaz Sharif has gone too far in his animosity towards the province, as per The News International report. Elahi stressed that Sharif was now turning to oppress the farmers of Punjab in order to protect his allies.
Pervaiz Elahi in a statement on Friday said that the agreement will automatically expire if the Greater Thal Canal agreement with the Asian Development Bank is not signed by December 13, according to the news report.
Elahi stated that the deadline for signing the Executive Committee of the National Economic Council (ECNEC) approved project is December 31 and added that Punjab had removed the objections raised by Sindh in the ECNEC meeting. Furthermore, he stressed that Pakistan Tehreek-e-Insaf (PTI)-led government had restored the Greater Thal Canal project and arranged funds. (ANI)
This report is filed by ANI news service. TheNewsMill holds no responsibility for this content.
