MANILA - The Asian Development Bank said yesterday it would lend $10 million to Pakistan for an urban renewal project in its economic capital of Karachi.

An ADB statement said the urban infrastructure of the city -- home to more than 12 million people and accounting for 95 percent of Pakistan's foreign trade and 30 percent of its industrial output -- had been neglected for two decades.

This has led to pollution, haphazard development and poor quality of life for some, the statement said.

"Infrastructure and services that are inadequate and unreliable are adding to business and household costs, harming Karachi's urban and natural environments, and decreasing the city's global competitiveness compared with alternative Asian mega cities," ADB urban development specialist Gulfer Cezayirli said.

The soft loan would support improvements in city planning, management, and financing, as well as in applying commercial principles in the provision of infrastructure and services, Philippines-based ADB said.

ADB's assistance, patable over 32 years with minimal interest, will cover 75 percent of the project cost of $13.33 million.*AFP

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