ISLAMABAD - The Asian Development Bank (ADB) will provide US $2 billion for Accelerating Economic Transformation Programme (AETP), targeted to correct macroeconomic distortions and ensure 8 per cent annual economic growth. Finance Ministry sources Friday told TheNation that the plan resembled with the government's announced four-point Economic Stabilisation Package and was spread over a period of three years. "Its successful implementation will ensure to achieve and sustain economic growth of 8 per cent from 2010 to 2020," they added. "Its not a plan, it's a set of concrete measures," said the sources. The key element of the AETP is that the effectiveness of one sub-programme will ensure the release of next tranche for next phase of reforms. The government and the international development partners finalised the programme after months long parleys. The World Bank and International Monetary Fund provided the technical assistance for the programme. The implementation on first phase of the plan has already been started, which paved the way for release of US $500 million on September 30. The major crux of the first phase was eradication of subsidies and addressing food and energy crisis. The ADB has convinced the government to give targeted subsidies to the poor instead of mismanaged ones, said the Finance Ministry sources who were part of the negotiating team. Its second leg is stretched from October 2008 to June 2009, which would further strengthen first phase reforms and after that Pakistan would be able to get another US $500 million before the end of the fiscal year 2009, said the sources. A senior official of Economic Affairs Division told TheNation that the government would try to convince the Manila-based agency to release the tranche in the third quarter to ease some pressure on external front. The next two sub-programmes are expanded between July 2009 and June 2011 and with that initial phase of structural reforms would be completed, the Finance Ministry sources added. Overall the reforms process is divided into two broader categories of shot-term and medium to long-term structural reforms. In short-term the government would correct the immediate distortions facing the economy with the help of international development partners. It also envisages strengthening of financial markets to facilitate the process. In the medium to long-term, the production and trade structures of the economy will be reformed. "Lack of economic diversification and structural transformation caused Pakistan to lose the track of average 7 per cent economic growth of past seven years," said the sources and added, "The people might term it a donor-assisted package but it offers all what is required in current deteriorating economic situation." The overarching aim of the AETP is to achieve and sustain 8 per cent economic growth from 2010 to 2020. The programme ensures to expand social safety net up to 5 million people by the end of the current fiscal year. The number will almost be doubled by 2010, as the government is giving sound guarantees to the international development partners. The banking sector credit to the private sector will jump to 42 per cent of the Gross Domestic Product in next ten years from the present 27 per cent. Correcting another imbalance, the plan talks about to increase the share of manufacturing sector from existing 19 per cent to 21 per cent in 2010 and ultimately 30 per cent of the GDP by 2020. Likewise, the share of high-value added outputs in exports would be increased to 15 per cent in 2012 and up to 40 per cent in 2020. The government will also introduce a new industrial policy aimed at diversifying and deepening industrial and export base.