Islamabad: The Asian Development Bank (ADB) on Friday provisioned a USD 1 billion loan package to Pakistan – geared towards providing immediate budgetary support to the national economy and to bolster the country’s financial reserves on an immediate basis, according to news sources.
This loan comes as part of a multi-donor economic reforms programme headed by the International Monetary Fund (IMF) to stabilise the national economy, which popularly suffered from a collapse in mid-2018. The package was sanctioned following the government’s implementation of IMF-approved financial reforms proposed by the fund to alleviate the country’s current account deficit, grow its economic base, and protect the lower-income groups against the social impact of the crisis.
In a related development, the ADB has also approved a USD 300 million policy-based loan to assist the government in tackling policy infrastructure hurdles and strengthening the economy.
This bolus is intended to support the first of three sub-programmes of an estimated total cost of USD 1 billion under the Energy Sector Reforms and Financial Sustainability Programme – a key component of the multi-donor economic IMF reform programme.