ISLAMABAD: Pakistan and the Asian Development Bank (ADB) signed around $1.20 billion loan agreements for sustainable growth in the country, a private television channel reported here on Wednesday.
According to details, the agreements would support and cover budget financing, women empowerment financing, domestic resource mobilization, and other finance-related projects.
About one-third of this amount is reserved for budget financing, marking an important development following the recent standby agreement with the International Monetary Fund (IMF).
The Economic Affairs Division (EAD) and the local ADB office streamlined these agreements last Friday, with the ADB committing to offer $400 million in budget support via two separate deals.
ADB Financial Support for Pakistan
Under the Domestic Resource Mobilisation program, the Asian Development Bank is expected to give a $300 million loan this week, while an additional $100 million in budget support is in the pipeline under the Women Financial Inclusion program, subject to procedural necessities. These funds are expected to boost the central bank’s reserves, approaching $7.5 billion.
Meanwhile, the ADB also signed agreements for various development projects, including $250 million for the power transmission sector, $102 million for the Punjab Workforce Readiness project, $83 million for the Khyber Pakhtunkhwa (KP) Food Security project, and $250 million for the Sindh Secondary Education project.
WB Approves $350 Million in Financing
Meanwhile, in another development, the executive directors’ board of the World Bank (WB) also approved $350 million in financing on Wednesday for the Second Resilient Institutions for Sustainable Economy (RISE-II) Operation to strengthen fiscal management and promote competitiveness for sustained and inclusive economic growth.
Najy Benhassine, the WB Country Director for Pakistan, remarked that Pakistan required urgent fiscal and structural reforms to restore macroeconomic balance and lay the foundations for sustainable growth.
