ISLAMABAD – In a positive economic development, Pakistan seek another $1.3billion for budgetary support.The Asian Development Bank (ADB) Fridayapproved $1.3 billion for budgetary support and key reforms in Pakistan,said an official ADB press release.
The ADB approved $1.3 billion in immediate budgetary support to Pakistan to“shore up the country’s public finances” and help strengthen a “slowingeconomy”, said a statement released by the bank.
The quick dispersing Special Policy-Based Loan is part of a comprehensivemultidonor economic reform programme led by the International Monetary Fund(IMF) to stabilise Pakistan’s economy after a major deterioration in itsfiscal and financial position in mid-2018 caused growth to slump andthreatened progress in alleviating poverty.
The bank said it approved the financing after the government implemented aseries of IMF-supported reforms and actions to improve its current accountdeficit, strengthen its revenue base, and protect the poor against thesocial impact of the economic crisis.
ADB approved policy-based loan that will help the government to addressfinancial sustainability, governance, and energy infrastructure policyconstraints in the energy sector.
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The financing will support the first of three sub-programmes totaling $1.3billion under the Energy Sector Reforms and Financial SustainabilityProgram, a key component of a comprehensive multi-donor economic reformprogramme led by IMF.
The cash shortfall across the power supply chain in Pakistan, also known ascircular debt, has shot up to more than $10 billion and is a longstandingchronic issue ailing the country’s power sector, the press release added.
The bank said that the energy reform programme aims to address theunderlying causes of circular debt with a focus on improving inadequatetariff and subsidy systems, strengthening energy accounting, and reducinggeneration costs.
