Pakistan likely to get additional $2.5 billion loan from ADB

ISLAMABAD: The Asian Development Bank (ADB) has indicated providing $2.5 billion in additional loans to Pakistan for the fiscal year 2022-23, ARY News reported on Friday.

According to Finance Ministry statement, $1.5 billion to $2 billion could be available in the ongoing calendar year.

“The ADB indicated the additional support of $2.5 billion for the next fiscal year, from which $1.5 billion to $2 billion can be available in the ongoing calendar year”, according to a statement issued by the Ministry of Finance.

The statement was issued after Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha held a meeting with Country Director ADB, Mr. Yong Ye.

She acknowledged the all-weather and trusted partnership of ADB with Pakistan, especially in the areas of energy, education, and fiscal & debt management.

She said: “Pakistan is facing various fiscal and monetary challenges but the present government is keenly working on various structural reform measures to bring back the economy on an inclusive and sustainable growth path.”

While concluding, Dr. Aisha Ghous Pasha thanked Mr. Yong Ye and his team for their dedication and assured them of full support and speedy implementation of the ongoing programs.

Economic woes

It is worth mentioning here that the coalition government, led by PM Shehbaz Sharif, is facing several economic challenges since coming into power in April 2022 after Imran Khan was dethroned as Pakistan PM through a no-confidence motion.

PAKISTAN’S FOREIGN EXCHANGE RESERVES HIT 28-MONTH LOW

The new coalition setup, since then, had approached International Monetary Fund (IMF) and Saudi government for bailout packages. The federal government recently also held talks with UAE economic team in Lahore for “financial support”.

According to sources, talks between Pakistan and the International Monetary Fund (IMF) could resume on 18 May in Qatar.

Foreign exchange reserves of the State Bank of Pakistan (SBP) also declined by $190 million to $10.308 billion during the week ended on May 6.

The country’s total foreign reserves, including net reserves of commercial banks, dipped to $16.375 billion, the central bank said.