ADB to provide Punjab with project readiness financing

ISLAMABAD: The Asian Development Bank (ADB) will provide the Punjab government with ‘project readiness financing’ to support the development of project pipelines and review government’s priority projects.

This financing aims to ensure projects are well-prepared for ADB funding and implementation, potentially speeding up the process and disbursement of funds, according to the ADB.

The $8.32 million funding approved last week will contribute to the improvement of the irrigation infrastructure that that will enhance water availability and increase productivity of the agriculture sector in Punjab, and subsequently alleviating rural poverty, and improving food security and economic growth.

Agriculture production in Punjab has benefited from the Indus Basin Irrigation System (IBIS) that provides irrigation water to 15 million hectares of land, of which about 60 per cent lies in Punjab. The IBIS is the lifeline of the Punjab agriculture sector. However, deteriorated century-old structures and inefficient water management within irrigation schemes and on-farm resulted to the unreliable surface irrigation water delivery in the IBIS.

Move to accelerate disbursement of funds for priority projects

A document released by ADB privy to the project says some cultivable lands in Punjab remain outside of the IBIS and rely on unpredictable scarce rainfall or ground water that may lower the water table. Although the Punjab government has placed a high priority on improving irrigation infrastructure and its efficiency, additional efforts are required for improved agriculture productivity and water-use efficiency to achieve economic growth and food security in the province.

In 2019, the provincial government identified five priority projects to develop, rehabilitate and upgrade irrigation infrastructure that will enhance water availability and increase agricultural productivity. The national consulting firms had prepared feasibility studies for these priority projects, but the project designs fell short due to the lack of an integrated approach, lack of an analysis of alternative strategies for optimal use of water, lack of a comprehensive analysis of Punjab’s share of water, lack of project-specific climate change considerations and adaptation measures, and incomplete due diligence and economic evaluation.

The proposed projects were: rehabilitation and upgrade of Upper Jhelum Canal System; Dera Ghazi Khan Canal Irrigated Agriculture Improvement; remodeling of Rasul-Qadirabad, Qadirabad-Balloki, and Balloki-Sulemanki canals; second phase of Greater Thal Canal project; and harnessing of Hill Torrents in Dera Ghazi Khan and Rajanpur.

Of the five priority projects, two are for the construction of new irrigation infrastructure and the development of existing irrigation infrastructure; and upgrade of water conveyance canals in the IBIS by remodeling of Rasul-Qadirabad, Qadirabad-Balloki, and Balloki-Sulemanki canals.

Published in Dawn, August 11th, 2025