Pakistan to receive $300 mn grant from Asian Development Bank

MANILA, PHILIPPINES: The Asian Development Bank (ADB) on Friday said that it will grant a loan worth $300 million to Pakistan so that the country's macroeconomic stability could be promoted.

According to a press release issued by the bank, the loan will facilitate improved trade competitiveness and export diversification.

“While COVID-19 hit Pakistan at a critical point in its macroeconomic recovery, the government’s ongoing efforts to ensure stability have started showing encouraging results this fiscal year,” said ADB Principal Public Management Specialist Hiranya Mukhopadhyay. 

Mukhopadhyay added that the loan scheme will support these efforts and help Pakistan improve its export competitiveness which has become more important than ever before because of the negative effects of the pandemic. 

According to the statement, the loan will assist the country in recovering its current account deficit in a sustained manner and continue to facilitate export diversification. 

"It will introduce important tariff- and tax-related policy reforms to help improve Pakistan’s international competitiveness and further strengthen key institutions, including accreditation bodies, the Export–Import Bank of Pakistan, and the Pakistan Single Window, " the statement read.

ADB is coordinating its efforts with other development partners and donors while the program complements International Monetary Fund-led reform initiatives by helping to improve competitiveness, which will help build robust foreign exchange reserves.

"ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region," the statement concluded.