ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Wednesday signed a US$300 million loan agreement for the “Improved Resource Mobility and Utilization Reform Program (Subprogram II)”.
The Government of Pakistan and the Asian Development Bank (ADB) have signed a US$300 million loan agreement for the “Improved Resource Mobility and Utilization Reform Program (Subprogram-II)”. Statements were issued by both sides.
Secretary, Economic Affairs Division, Dr. Kazim Niaz and Country Director, Pakistan Resident Mission, ADB, Ms. Emma Fan signed the loan agreement. The ceremony was attended by senior officials of the Government of Pakistan and ADB.
The signing of the agreement signifies Pakistan’s commitment to prioritize macroeconomic stability and financial stability through enhancing domestic resource mobilisation.
The program is designed in a programmatic mode and aims to introduce structural reforms in trade, revenue generation and capital market development.
A $500 million Policy Based Guarantee (PBG) is also attached to this Policy Based Loan (PBL), which is supported by a sovereign counter-guarantee and a compensation for enhancing trade finance of $1.00 billion.
The total financial package of $800 million will play a significant role in Pakistan’s ongoing economic recovery and stabilization efforts.
