JBIC assisted projects to promote trade in Pakistan
Pakistan Times Business & Commerce Desk

ISLAMABAD: Japan Bank for International Cooperation (JBIC) has been financially assisting two projects in Pakistan

These two projects include construction of Indus Highway (Phase III) and Dadu-Khuzdar Transmission System, an official of finance division said here Monday.

To execute these projects JBIC has signed a loan agreement with the government amounting to $ 207 million (19.455 billion Yen). These concessionary loans have a repayment period of 30-year including 10-year grace period.

According to JBIC’s latest report, the country has enjoyed strong economic growth in recent years with ideal GDP despite the damage caused by earthquake of last year.

The government has prepared a 10-year plan as well as Poverty Reduction Strategy Paper (PRSP) for achievement of UN Millennium Development Goals (MDGs).

Praising government’s steps for poverty reduction and sustained economic growth, JBIC said its assisted projects would be further helpful in these efforts.

Indus Highway Construction Project (III) aims to promote domestic and international trade as well as accelerate economic development in the areas along the highway.

The project envisages construction of additional two-lane 200 km carriageway between Sehwan and Ratodero in Central and Northern Sindh.

The project will enable the completion of entire route of the Indus Highway.

Improved access from rural areas of Sindh to large cities such as Karachi is also expected to contribute to social and economic development.

The fund from the loan will be applied to civil works and consulting services, JBIC said.

The other project of Dadu-Khuzdar Transmission System aims to meet increasing power demand in Balochistan through installation of a new transmission line from Dadu, Sindh to Khuzdar, Balochistan.

The new project will ensure an adequate supply of electric power to the province.

Completion of these projects will provide basis for industrial development and contributing to the regional social and economical uplift, said an official in Economic Affairs Division.●