ADB to provide $300 million to support Pakistan’s forex reserves

The Asian Development Bank (ADB) will lend $300 million to support Pakistan’s fragile foreign exchange reserves after Islamabad met almost all the conditions related mainly to lowering barriers to imports.

The board of directors of the Manila-based lending agency is likely to approve the $300 million worth of the second tranche of the Trade and Competitiveness Programme in the last week of the current month, sources in the lending agency told The Express Tribune.

The $300 million is part of the $800 million budgetary support programme and the regional lender has already disbursed the first tranche in August last year.

Earlier last week, the regional development bank had announced $10 billion in fresh assistance to Pakistan over the next five years to speed up the economic recovery process.

The financial assistance is likely to be given under ADB’s new Country Partnership Strategy (CPS-2021-25).

The ADB has so far extended over $600 million in loans to Pakistan in the current fiscal year and after the upcoming approval, its lending will jump close to $1 billion. However, about 60pc of lending is in the shape of policy loans, which are not helpful in the long run.

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