The Asian Development Bank (ADB) on Friday approved $1.5 billion in financing to help Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.
The loan, provided under ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE) Program, will help fund the government’s $2.3 billion countercyclical development expenditure program designed to cushion the impacts of external shocks, including the Russian invasion of Ukraine.
ADB has approved $1.5 billion in financing to support people, livelihoods, and infrastructure in Pakistan in the wake of the recent floods which have affected millions and caused extensive damage across the country.
— Asian Development Bank (@ADB_HQ) October 21, 2022
Read more: https://t.co/lyJwBmQzsD #ADBNews pic.twitter.com/KkaOSn6dbM
Finance Minister Ishaq Dar, tweeting from his official handle, announced that ADB has approved financing of $1.5 billion for Pakistan under its Building Resilience with Active Countercyclical Expenditures (BRACE) programme.
The minister added that the signing of the agreement and the release of funds would begin from Monday, October 24.
AlhamdoLilah!
— Ishaq Dar (@MIshaqDar50) October 21, 2022
Asian Development Bank’s Board has approved today BRACE facility of US Dollars 1.5 Billion for Pakistan.
Agreement signing and release of funds in the week beginning Monday 24th Oct 2022.
“Pakistan’s recovery from the COVID-19 pandemic has been impeded by external shocks,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.
“Increasing business costs and rising living expenses are affecting millions of Pakistanis, especially the poor and vulnerable. ADB’s program will help the government manage the impacts of high prices, increasing food insecurity, slowing business activity, and reducing income for vulnerable groups, many of whom are also reeling from the devastating floods,” he added.
Read Dar expects 'positive' results from IMF talks
“The program is part of a comprehensive and well-coordinated package of support. It will help the government deal with the impact of the immediate shocks to the economy, while, in parallel, continuing the structural reforms that are necessary to improve the country’s medium- to long-term macroeconomic prospects,” said ADB Director for Public Management, Financial Sector, and Trade Tariq Niazi.
“We are working closely with the International Monetary Fund and other development partners to ensure that our support through policy dialogue, technical assistance, and program lending is well-coordinated and that, ultimately, we are able to help the government improve Pakistan's resilience to shocks.”
The news comes a day after Dar said that Pakistan informed the US about its decision to buy oil from Russia but only at terms that are more favourable than those offered to India.
Dar, in his first public event after returning from Washington, also ruled out seeking any relief from the International Monetary Fund and “begging” from other countries for aid for the flood victims. But he assured the markets that there was no need to panic and foreign exchange reserves will soon be up.
“The government has been actively pursuing the policy of purchasing cheaper oil from Russia and I have sounded the Americans about our decision during a meeting with the US officials”, he said.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ