Thursday, August 22, 2019
News

ADB approves $500m loan to Pakistan for budgetary support

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Islamabad | Thursday, 2019 5:45:05 PM IST
The Asian Development Bank (ADB) has approved a $500 million loan for budgetary support to Pakistan, restoring policy-based lending after keeping it suspended for over two years due to deterioration in macroeconomic conditions, the media reported on Thursday.

The ADB board of directors on Wednesday approved the loan under the $800-million Trade and Competitiveness Support Programme, reports The Express Tribune.

The agreement was inked by Economic Affairs Division Secretary Noor Ahmed and ADB Country Director Xiaohong Yang. Minister for Economic Affairs Hammad Azhar witnessed the loan signing.

The government expects to receive the payment by the weekend, which will provide cushion to the foreign exchange reserves held by the State Bank of Pakistan.

The loan approval was pegged with introduction of a new legislation and approval of e-commerce policy by the federal cabinet.

The ADB and the World Bank had suspended budgetary support for Pakistan in 2017 after its macroeconomic conditions started deteriorating.

Although the macroeconomic conditions still remain fragile, the international lenders have decided to restore budgetary support in the wake of the three-year Extended Fund Facility of the International Monetary Fund (IMF), The Express Tribune reported.

The IMF has projected $4.3 billion in budgetary support from the World Bank and the ADB from 2019-20 to 2021-22.

Out of the $4.3 billion, the IMF has shown $2.3 billion in budgetary assistance from the ADB, which is 54 per cent of the projected support. The IMF has projected inflow of $800 million from the ADB in the current fiscal year, although Islamabad is seeking at least $2.1 billion from the bank.

Pakistan is heavily dependent on international creditors for current account deficit financing, repayment of maturing debt and building foreign currency reserves.

It will need at least $25.6 billion in the current fiscal year to meet these three obligations.

--IANS ksk

( 315 Words)

2019-08-08-11:54:05 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE ASIA NEWS
Decks clear for limiting river flow to P...
Nepal bans single-use plastics on Everes...
Pakistan to now raise Kashmir issue at I...
Kashmir India's internal matter: US Defe...
Qureshi speaks to French counterpart on ...
5 Bangladeshi infiltrators arrested in K...
More...
 
INDIA WORLD ASIA
CBI team scales wall to enter Chidambara...
Punjab CM writes to PM Modi, seeks Rs 10...
WB: Mamata Banerjee makes, shares tea wi...
Delhi Assembly session from August 22...
Proclaimed offender held in Delhi after ...
Joel Reifman is new US Consul General in...
More...    
 
 Top Stories
Nepal bans single-use plastics on E... 
As Liam Hemsworth files for divorce... 
Gerard Butler all praise for Morgan... 
Amit Shah arrives in Goa for two-da... 
Chidambaram's dignity would have st... 
MP: ATS busts terror funding gang i... 
Lupin divests Japanese subsidiary K... 
Chris Pratt starrer 'Ghost Draft' a...