Islamabad: Pakistan will get a loan of $3.4 billion from the Asian Development Bank for budgetary support, PM Imran Khan’s adviser on finance has said as the cash-strapped country tries to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy.
Of the total amount, $2.1 billion would be released within a year of the agreement between the ADB and the finance ministry, Federal Minister for Planning, Development and Reforms Khusro Bakhtiar was quoted as saying by Dawn. The loan from the Philippines-headquartered global finance institution was “on a concessional rate”, he said.
Adviser to the PM on Finance Dr Abdul Hafeez Shaikh said on Twitter the ADB will provide $3.4 billion to Pakistan for budgetary support. “USD2.2 billion will be released this fiscal year (FY), starting in the first quarter of FY 2019-20. This will help the reserve position and the external account,” he tweeted.
ADB’s Director General Werner Leipach and its country director Xiaohong Yang called on Shaikh and discussed with him matters relating to ADB’s upcoming operations in Pakistan, the finance ministry said.
“The director general (Leipach) briefed the adviser in addition to strong project portfolio, the bank is also keen to provide balance of payments financing to support the government of Pakistan’s structural reform agenda,” said the statement. Pakistan seeks help to overcome a ballooning balance of payments crisis.
Last month, it reached an agreement in principle with the International Monetary Fund (IMF) for a three-year, $6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy.
