ASIAN DEVELOPMENT BANK (ADB) The Asian Development Bank was established under the aegis of the United Nations in 1968 as a part of the regional development banking system The ADB is headquartered in Manila, the Philippines, and has over 50 members, including the Central Asian states of the former Soviet Union Japan and the United States are the largest contributors of funds to the ADB, each with a share of 16 percent of the prescribed capital of US$23 billionPakistan is one of the principal recipients of assistance from the ADB It has received loans worth US$175 billion since 1968, making it the second largest beneficiary of the bank’s operations About 55 percent of the loans made by the ADB came from the Asian Development Fund (ADF), the soft arm of the bank Credits from the ADF are free of interest; beneficiaries pay only a small service charge The ADB has provided assistance for a number of important projects, including the Swabi Salinity Control and Reclamation Project (US$118 million) In 1995, the ADB joined the World Bank and a number of other donors to finance the Ghazi Barotha Hydroelectric project

In 2005, the bank decided to assist Pakistan in developing its infrastructure, long neglected because of the paucity of public resources It was especially interested in funding projects for improving transport and services in Karachi, the country’s largest city An initial provision of US$100 million was made for this purpose The bank also indicated its interest in tapping the local financial market, by using its good credit rating which was better than that of the government Also in 2005, following the devastating earthquake that leveled parts of northern Pakistan, the ADB provided US$1 billion of the more than US$6 billion raised by the government to bring relief and rehouse the affected population

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