ISLAMABAD: The Asian Development Bank has approved a USD 300 million policy-based loan to Pakistan to help promote macroeconomic stability in the cash-strapped country.
The announcement by the Philippines-headquartered lender came a week after Pakistan secured USD 800 million worth of debt freeze deals from 14 members of the G20.
As of August this year, the country owes USD 25.4 billion to the group of 20 rich nations.
The USD 300 million loan would improve trade competitiveness and export diversification, said Hiranya Mukhopadhyay, Principal Public Management Specialist at the Asian Development Bank (ADB).
“While COVID-19 hit Pakistan at a critical point in its macroeconomic recovery, the government’s ongoing efforts to ensure stability have started showing encouraging results this fiscal year,” Mukhopadhyay said in a statement.
The ADB’s programme will support Pakistan’s efforts to improve its export competitiveness which was more important than ever given the impacts of the pandemic, he said, adding that it is expected to enable Pakistan in recovering current account deficit in a sustained manner as well as facilitate export diversification.
—PTI

Press Trust of India