ADB transfers $1.5 billion loan to Pakistan: SBP sources

KARACHI: Asian Development Bank (ADB) on Wednesday transferred $1.5 billion loan to Pakistan, quoting central bank sources ARY News reported.

ADB on Monday signed an agreement with Pakistan to provide $1.5 billion loan for budgetary support and help flood-related rehabilitation and reconstruction.

The loan would build the foreign exchange reserves and rein in the rupee’s depreciation.

Pakistan’s foreign exchange reserves holding the State Bank of Pakistan (SBP) reach to $9billion with transfer of ADB load.

The country’s total forex reserves had declined to $13.25bn as of Oct 14, which included SBP’s holdings of $7.597bn, equivalent to about five weeks of controlled imports.

The $1.5bn ADB loan is aimed to provide social protection, promote food security, and support employment for people amid devastating floods and global supply chain disruptions.

The ADB in a statement said after signing the loan agreement that the financing will provide the fiscal space needed for the government to implement its package, which is designed to target the poorest families in Pakistan who are often disproportionately affected in times of crisis. The government’s support includes specific measures to promote gender empowerment and climate change adaptation, which have become even more important in light of the recent floods, the bank stated.