The Asian Development Bank (ADB) has agreed to provide long-term loans for three projects involving irrigation, power and rural development during a meeting with the officials of the Planning & Development Commission on 10 March. The bank has given the go-ahead for an estimated $110 million, 40-kilometre-long canal to link the Ravi river with Marala, west of Lahore city. The canal will be built to improve the irrigation system and encourage farmers living in the surrounding areas to grow high-value crops.

An estimated $120 million Power Efficiency Project has also been approved to enhance the power distribution system in the country. The project will be undertaken by mid-1999. A consultant is expected to be appointed in the next three months.

ADB also approved a comprehensive Area Development Programme for the rural areas. Technical studies will be carried out once the bank gets formal approval from its board of directors during the next two months. Under the programme, schools, roads, hospitals and other infrastructure will be developed in rural areas of all four provinces in the country.