The Asian Development Bank (ADB) on Friday approved $1.5 billion in financing to help Pakistan provide “social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.”
The Manila-based institution said in a statement that the loan will help fund the government’s $2.3 billion “countercyclical development expenditure program designed to cushion the impacts of external shocks.”
“Pakistan’s recovery from the COVID-19 pandemic has been impeded by external shocks,” said Yevgeniy Zhukov, ADB’s director general for Central and West Asia.
“Increasing business costs and rising living expenses are affecting millions of Pakistanis, especially the poor and vulnerable. ADB’s program will help the government manage the impacts of high prices, increasing food insecurity, slowing business activity, and reducing income for vulnerable groups, many of whom are also reeling from the devastating floods,” he added.
Besides devastating floods that Islamabad says caused damages up to $30 billion, resulted in at least 1,700 deaths and displaced millions of people, Pakistan’s foreign reserves run low, and inflation stands at decades-high levels.
“The (ADB) program is part of a comprehensive and well-coordinated package of support. It will help the government deal with the impact of the immediate shocks to the economy, while, in parallel, continue the structural reforms that are necessary to improve the country’s medium- to long-term macroeconomic prospects,” said Tariq Niazi, ADB Director for Public Management, Financial Sector, and Trade.
Source: Anadolu Agency