The Economic Affairs Division of Pakistan has signed an agreement with the Asian Development Bank (ADB) worth $1.3 billion for budgetary support and reforms.
Hammad Azhar, Minister for Economic Affairs witnessed the loan signing of two program loans amounting to USD 1.3 Billion between the Government of Pakistan and the Asian Development Bank. The loan agreements were signed by Dr. Syed Pervaiz Abbas, Secretary, Economic Affairs Division and Ms. Xiaohong Yang, Country Director, Asian Development Bank (ADB).
Under the Special Policy-Based Loan (SPBL) Facility, Asian Development Bank has committed to providing USD 1 billion for Economic Stabilization Program.
Out of the total USD 1.3 billion loan, US$ 300 Million is allocated to Energy Sector Reforms & Financial Sustainability Program (Subprogram 1). It will address issues regarding energy shortfalls, technical lacunas and policy-related shortcomings in Pakistan’s energy sector.
Mr. Muhammad Hammad Azhar, Minister for Economic Affairs acknowledged ADB’s continued support for Pakistan. The Minister expressed that ADB’s policy-based lending will not only strengthen the foreign exchange reserves but will also provide fiscal space to the government for implementing its reforms agenda and boost economic activities in the country. The provision of program lending by the Asian Development Bank is indicative of government successful policies for macroeconomic stability and reforms, he added.
Ms. Xiaohong Yang, Country Director stated that ADB is one of the leading development partners of Pakistan. ADB fully supports the government’s development vision and policies. She expressed that ADB is providing its support to the government for policy reforms and project financing in the key priority areas such as energy, road, social sector, water & irrigation and urban services.