The Asian Development Bank (ADB) is poised to consider a $500 million loan for Pakistan, focused on enhancing environmental protection and resilience against natural disasters. The ADB board is scheduled to review the proposal on October 29, as confirmed by the Finance Ministry.
This announcement followed a meeting in Washington between ADB President Masatsugu Asakawa and Finance Minister Muhammad Aurangzeb.
During their discussions, Asakawa reaffirmed ADB’s commitment to supporting Pakistan’s development initiatives, highlighting the $500 million loan offer.
Minister Aurangzeb expressed gratitude for ADB’s continued support, particularly noting the bank’s decision to exempt Pakistan from excess surcharges for the next three years. He praised ADB’s significant role in the country’s policy-based loan programs, which are crucial for ensuring economic stability.
The finance minister also mentioned the anticipated completion of ADB’s Country Partnership Framework, which will outline ongoing collaborative development efforts.
Both leaders emphasized the importance of regional cooperation and the necessity of strengthening Pakistan’s domestic revenue generation.
Additionally, Aurangzeb held discussions with representatives from Moody’s Credit Rating Agency and the US Export-Import Bank (EXIM) during his visit. He thanked Moody’s for recently upgrading Pakistan’s credit rating to CAA2.
They discussed issues related to debt sustainability, monetary policy, external vulnerabilities, foreign exchange reserves, and fiscal discipline, as well as the overall strength of the financial markets.
In a separate meeting with Reta Jo Lewis, president of the US EXIM Bank, Aurangzeb explored potential partnerships in Pakistan’s energy, minerals, and IT sectors.
Lewis assured him that the US EXIM Bank would provide the necessary data to evaluate financing opportunities for entering the Pakistani market, marking a significant step toward strengthened bilateral cooperation.
