Washington-(Special Correspondent/Webdesk): The Asian Development Bank (ADB) is poised to evaluate a $500 million loan to Pakistan, designed to bolster initiatives focused on environmental protection and resilience against natural disasters.
According to the Finance Ministry, the ADB board will consider the loan proposal on October 29. This announcement followed a meeting in Washington between ADB President Masatsugu Asakawa and Finance Minister Muhammad Aurangzeb, during which Asakawa confirmed the loan and reiterated ADB’s commitment to aiding Pakistan’s development efforts.
The finance minister expressed gratitude for the bank’s ongoing support, particularly noting ADB’s decision to exempt Pakistan from excess surcharges for the next three years. Aurangzeb also acknowledged ADB’s crucial role in Pakistan’s policy-based loan programs, emphasizing their significance for the country’s economic stability.
During the meeting, Aurangzeb highlighted the anticipated swift completion of ADB’s Country Partnership Framework, which will outline the future of developmental collaboration between the bank and Pakistan. Both officials stressed the importance of regional cooperation and the necessity to enhance Pakistan’s domestic revenue generation.
In addition, Finance Minister Aurangzeb engaged with representatives from Moody’s Credit Rating Agency and the US Export-Import Bank (EXIM) during his visit to Washington. He thanked Moody’s for recently upgrading Pakistan’s credit rating to CAA2.
The discussions included topics such as debt sustainability and monetary policy, along with addressing external vulnerabilities, foreign exchange reserves, and fiscal discipline. They also touched on the revenue situation, government capacity, and the robustness of financial markets.
In a separate meeting with Reta Jo Lewis, president of the US EXIM Bank, Aurangzeb explored potential partnerships in Pakistan’s energy, minerals, and IT sectors. Lewis assured the finance minister that the US EXIM Bank would provide the necessary data to evaluate financing opportunities for entering the Pakistani market, marking a significant step toward enhanced collaboration.
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