Islamabad, ADB sign $1.3b deal for economic reforms

Hammad Azhar says it will provide fiscal space for implementing its reforms agenda

ISLAMABAD: The Asian Development Bank’s (ADB) policy-based lending will not only strengthen the foreign exchange reserves of the country, but will also provide fiscal space to the government for implementing its reforms agenda and boost economic activity, said Minister for Economic Affairs Hammad Azhar.

He made the comments at the signing ceremony of two loan programmes worth $1.3 billion between Pakistan and the ADB for economic reforms.

The agreements were signed by Economic Affairs Division Secretary Dr Syed Pervaiz Abbas and ADB Country Director Xiaohong Yang.

Under the Special Policy-Based Loan (SPBL) Facility, the ADB has committed to providing $1 billion for economic stabilisation programme. The programme is aimed at improving exchange rate management, strengthen public financial management to mobilise more revenues, restore allocated efficiency of scarce public resource, address the power sector pricing issues and reduce the social impacts of macroeconomic stability measures by improved targeting and transparency of existing social protection programmes.

“The provision of programme lending by ADB is indicative of the government’s successful policies for macroeconomic stability and reforms,” the minister added.

Also speaking on the occasion, Xiaohong said that ADB was one of the leading development partners of Pakistan.

“ADB fully supports the government’s development vision and policies.”

She added that ADB was providing its support to the government for policy reforms and project financing in key priority areas such as energy, road, social sector, water and irrigation and urban services.

“ADB is committed to providing wide-range financing options to strengthen Pakistan’s economy and reduce the risk of external economic shocks,” she added. The ADB country director also reiterated ADB’s strong commitment to further strengthen and expand its partnership with Pakistan.

Published in The Express Tribune, December 10^th, 2019.

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