ADB pledges $8 billion loan for Pakistan

Starting in 2024, the Asian Development Bank (ADB) will provide Pakistan with $2 billion in yearly loans, half of which will be on concessional terms.

ADB President Masatsugu Asakawa gave the guarantee while in Islamabad and meeting with Pakistani authorities.

This would provide $8 billion in funding over the course of four years. For each of the two billion dollars provided yearly, a concessional rate of two percent will be applied to one billion.

The ADB president underlined the importance of increased cooperation in areas such as public-private partnerships, energy sector reforms, and climate resilience in addition to financial support.

Moreover, Asakawa laid the groundwork for the ADB’s expanded role in Islamabad.

During his visit, the Prime Minister Shehbaz Sharif and the President of ADB also had a meeting. The prime minister emphasized continued economic stabilization initiatives in the energy and tax revenue sectors.

Additionally, the two leaders witnessed the signing of loans of $720 million for restoration projects connected to floods in Sindh and Khyber Pakhtunkhwa.

Important subjects like energy reforms and climate resilience will be the focus of the $8 billion in financing. Cooperation will improve and current attempts to stabilize the economy will be supported by the new ADB mission in Islamabad.