In a major development, Pakistan has signed a $772 million loan agreement for flood relief with the Asian Development Bank (ADB).
According to the details, Pakistan and ADB signed a total of 5 loans which are worth $772.6 million for flood reconstruction, skill development, power transmission, and irrigated agriculture projects across the country.
Minister for Economic Affairs Ayaz Sadiq and ADB DG Yevgeniy Zhukov witnessed the signing of the loans. Pertinent to mention that the recent loan for Pakistan takes the total loans from ADB for the year to $2.7 billion.
While talking to the media, federal minister Ayaz Sadiq said that since April alone, $2.3 billion of loan agreements have been made, if there was a fear of Pakistan’s default, these agreements would not have been made, the agreements are proof that Pakistan is not defaulting, only rumors are being spread.
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He further said that there is no such thing as the impression being spread that Pakistan is going bankrupt or in financial problems, if there was such a situation, the agreement would not have been signed. Minister Ayaz Sadiq also revealed that the concessionary ADB loan was signed at the rate of 1% for a period of 40 years.
Minister for Economic Affairs Ayaz Sadiq and ADB DG Yevgeniy Zhukov witnessed signing of 5 loans worth $772.6 million by Sec EAD Kazim Niaz and ADB DCD Asad Aleem for #floodreconstruction, #skilldevelopment, #powertransmission, irrigated #agriculture projects across #Pakistan pic.twitter.com/soFBGCfqxw
— ADBPakistan (@PakistanADB) December 15, 2022
On October 26, Asian Development Bank transferred a $1.5 billion loan to Pakistan. ADB had signed an agreement with Pakistan to provide $1.5 billion loan for budgetary support and help flood-related rehabilitation and reconstruction.
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.
Floods caused by abnormal monsoon rains and a melting glacier submerged huge swathes of the country earlier this year and killed nearly 1,700 people, the majority of them children and women.
Read more: Pakistan likely to receive additional $2.5b loan from ADB