ADB to provide Rs274 bn to Pakistan

ISLAMABAD: The Asian Development Bank (ADB) on Friday assured Islamabad of providing $1.7 billion (approx Rs274 billion) including $800 million (Rs129 billion) for COVID-19 and $900 million (Rs145 billion) policy based lending in ongoing and next fiscal year.

According to official announcement made here on Friday stating that Federal Minister for Economic Affairs Makhdum Khusro Bakhtyar had a teleconference with the President of Asian Development Bank Masatsugu Asakawa at Ministry of Economic Affairs this morning. Senior officials from both the sides attended the virtual meeting.

The federal minister thanked the President ofAsian Development Bank for extending financial assistance of $2.5 million as grant and repurposing of $50 million for procurement of equipment relating to COVID-19 response in Pakistan. He also requested the ADB president for early approval of $500 million as Counter Cyclical Support and $300 million as Emergency Assistance Lending (EAL) within this financial year.

The minister also urged the ADB president for his support to a pipeline of $900 million as various Policy Based Loans for reforms in Capital Markets, Trade & Competitiveness and Energy Sector to be approved by the ADB board before the end of 2020.

The federal minister expressed his views that the socioeconomic impact of COVID-19 is severer in the developing and low-income countries due to their limited technical and financial capacity. With this in mind, the Prime Minister of Pakistan appealed to the world community including bilateral and multilateral development partners for their joint support to address socioeconomic challenges and debt relief for developing countries.

The president apprised the minister that ADB has so far extended grant assistance worth $2.5 million and repurposed $50 million from National Disaster Risk Management Fund for Pakistan to respond to the COVID-19 pandemic and this support would bolster Pakistan’s capability to contain the virus. He also assured that the Bank will positively consider Pakistan’s request for timely approval of additional financing from its board.