The Asian Development Bank (ADB) has allocated $50mn to bolster fiscal and public management reforms in the Kyrgyz Republic. This initiative aims to facilitate increased public funding for the nation's transition to a low-carbon economy and to enhance climate adaptation measures, while also integrating gender inclusiveness into budget processes.
The funding, allocated under subprogram 1 of the Sustainable Fiscal Management and Governance Improvement Program, comprises a $43mn policy-based concessional loan and a $7mn grant from the Asian Development Fund.
The Kyrgyz economy faces vulnerabilities stemming from macroeconomic shocks, limited fiscal space, and governance weaknesses, which hinder the government's ability to respond effectively to emerging challenges.
Recognizing its susceptibility to climate change impacts, the government prioritizes structural reforms aimed at bolstering fiscal sustainability, enhancing domestic resource mobilization, and improving public sector governance and efficiency to foster economic growth.
ADB's Sustainable Fiscal Management and Governance Improvement Program consists of two subprograms designed to strengthen public financial management, enhance corporate governance and procurement practices of state-owned enterprises, refine tax policy and administration, and bolster transparency and accountability in public administration. These reforms are expected to support resilient and inclusive economic growth through comprehensive institutional changes.
"The approval of this program underscores ADB’s commitment to assisting the Kyrgyz Republic in overcoming development challenges and enhancing governance through anti-corruption measures and sustainable economic growth initiatives," stated ADB Director General for Central and West Asia, Yevgeniy Zhukov. "The program aims to enhance the effectiveness of public institutions and financial management, ensuring robust governance and transparency."
ADB Principal Public Sector Specialist Hanif Rahemtulla stated that the program's focus on climate-sensitive and gender-responsive public financial management will support sustainable and inclusive economic growth.
This year marks the 30th anniversary of collaboration between ADB and the Kyrgyz Republic, marked by over 217 projects and technical assistance interventions across key economic sectors. Since joining ADB in 1994, the Kyrgyz Republic has received commitments totaling $2.6bn in public sector loans, grants, and technical assistance.
Established in 1966 and owned by 68 members, ADB remains steadfast in its mission to achieve a prosperous, inclusive, resilient, and sustainable Asia-Pacific region, continuing efforts to eradicate extreme poverty.
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