Pakistan to receive yet another loan of $6 billion: Report
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ISLAMABAD: Pakistan and Asian Development Bank (ADB) on Friday agreed to kick off loan portfolio of $6 billion for various economic sectors.
“The CPS for Pakistan from 2019-20 to 2021-22 will provide lending for energy, trade, competitiveness and other sectors during next three years period,” a senior official said.
The upcoming CPS will kick in from the next fiscal year. The ADB plans to provide $2 billion lending to Pakistan every year for the next three years under the program.
Pakistan supported an idea of combining sovereign and private lending under the umbrella of the ADB, the official said, citing a meeting between an ADB’s delegation and Minister for Finance Asad Umar. The delegation comprised of Executive Director Shahid Mahmood, Director General (Central and West Asia Department) Werner Liepach, Director General (Private Sector Operations) Michael Barrow and Country Director Xiaohong Yang.
Umar said the government is keen to devise innovative financing model, develop capital markets and mobilise private sector investment in infrastructure and social sector.
“These initiatives will not only provide fiscal space to the government but will also be helpful to boost economic activities in the country,” he was quoted as saying in a ministry’s statement.
Finance minister acknowledged the ADB’s support for development of Pakistan and discussed the priorities areas and new avenues for future interventions.
He appreciated the proactive approach of Pakistan Resident Mission (PRM) and suggested to further enhance the role and capacity of PRM.
