The Asian Development Bank (ADB) has officially released $1.5 billion in financing under the Building Resilience Active Countercyclical Expenditures (BRACE) Program to help the government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods.
While confirming the development, the Economic Affairs Division (EAD) revealed that the loan agreement was signed between Pakistan and ADB on Monday.
The BRACE Program aims to support the government’s efforts to address rising energy and fuel prices due to supply chain disruptions and the adverse impact of inflation on the poor and vulnerable. The objective of the program is to support the government’s counter-cyclical development spending for social security, food security initiatives, and support for businesses.
The loan will slightly improve the foreign exchange reserves and balance of payments of the country. It will be spent on food, social security, and building infrastructure in flood-affected areas. The fund will also increase the number of people receiving cash assistance from 7.9 million to 9 million.
Likewise, the money will help with health facilities and the enrollment of children in schools. Health protection for pregnant women as well as children under two years of age is also included in the program.
