Pakistan signs agreement with ADB for $400mn loan
ISLAMABAD: The Asian Development Bank (ADB) will provide $400 million soft loan to Pakistan to improve efficiency of the energy sector, ARY News reported.
An agreement for this has been signed Economic Affairs Division of Pakistan and ADB in the presence of Secretary Economic Affairs Division Nargis Sethi and ADB representative.
Speaking to media, Federal Finance Minister Ishaq Dar said the loan will be paid back in 25 years.
He said coal power projects will be set up in different parts of the country with the help this loan.
The Minister said that Pakistan will receive loan of $1.45 billion during this year from three different global financial institutions, however the load will not affect the overall loan of the country.
He said due to steps taken by the government, the economy is now heading towards positive direction and is on takeoff stage. It will also get a boost once the security situation improves.
Furthermore, A high level meeting of World Bank will be held in Washington on the World Labor Day (May 1) to discuss the issuance of fresh loans to Pakistan while Japan is ready to provide loan to Pakistan energy sector reforms.