ISLAMABAD – The government has decided to reallocate non-utilized funds andseek fresh funds from multilateral agencies for coronavirus (Covid-19)prevention across the country, said federal minister for Economic AffairsHammad Azhar.
The federal minister took to Twitter on Friday and said,
Economic Affairs Division is finalizing reallocations of non-utilized fundsfrom some foreign projects & seeking fresh funds from multilateral agenciesto deploy towards Corvid-19 prevention across the country. We aim to makethese funds available to relevant departments by next week.
He added that the finance division is working with the advisor on healthfor the provision of local funds. The provinces have also been asked tocoordinate with their respective health departments for the provision ofresources.
The World Bank has committed $12 billion (£9.4 billion) aid for developingcountries grappling with the coronavirus. The emergency package includeslow-cost loans, grants, and technical assistance. The action comes asleaders around the world pledge to shield their countries from the economicimpact of the outbreak. It follows warnings that economic slowdown from theoutbreak could tip countries into recession.
The International Monetary Fund has announced $50 billion (£39 billion) ofsupport for countries hit by the coronavirus. The IMF said it is making themoney available to help poor and middle-income countries with weak healthsystems respond to the epidemic.
The Asian Development Bank (ADB) has announced $200 million through itsSupply Chain Finance Program for companies manufacturing and distributingmedicines and other items needed to combat the novel coronavirus (COVID-19).
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Companies manufacturing and distributing products, including medicines andpersonal protective equipment, are increasingly strained as production anddistribution ramp-up to address COVID-19. The support from ADB, working inpartnership with commercial banks, will provide such companies in Asia andthe Pacific with additional working capital to meet expansion and otherrequirements.
ADB’s Head of Trade and Supply Chain Finance Steven Beck says:
The support will target companies in the supply chain that are critical tofighting the virus. We’re looking to support companies that want to ramp upproduction and therefore need to engage suppliers.
Given that a single pool of supply chain finance is typically used for asubsequent delivery over a period of 120–180 days, the $200 millionfacility could support more than $400 million of financing over the next 12months.
Fifty-fifty risk sharing from partner commercial banks could boost supportunder the facility to $800 million over the same period.
