ADB agrees to provide US$500mn to Pakistan for COVID vaccine procurement

ISLAMABAD: The Asian Development Bank (ADB) has approved a US$500 million loan for Pakistan to help the country in procuring COVID vaccine, ARY NEWS reported on Friday.

According to details, besides COVID vaccine procurement, a US$500 million loan provided from the ADB would also be used for upgrading health facilities in the wake of the fourth wave of COVID-19 in the country.

Other than improving the health infrastructure, the ADB had provided Pakistan with the funds to cooperate in various other fields.

On March 30, Pakistan and Asian Development Bank (ADB) agreed to expand cooperation in various sectors.

The understanding came during a virtual meeting between Minister for Economic Affairs Makhdum Khusro Bakhtyar and Director General, the Central and West Asia Department of the Asian Development Bank Yevgeniy Zhukov.

Both sides discussed and agreed to expand cooperation in the areas of trade and competitiveness, social protection, public-private partnership, operationalization of the EXIM Bank, and domestic resource mobilization.

Later in May this year, Pakistan and Asian Development Bank (ADB) signed the $300 million financing agreement of the Balakot hydropower development project.

The total cost of the Balakot hydropower development project is US$ 755 million out of which ADB has committed to providing $300 million while the Asian Infrastructure Investment Bank (AIIB) will finance $280 million.

According to the spokesperson, ADB is providing financing at highly concessional rates (LIBOR six-month + 0.5% per annum – currently 0.7% per annum) for the project for a period of 27 years including a grace period of seven years.