Asian Development Bank approves $500M for Pakistan

By Islamuddin Sajid

ISLAMABAD, Pakistan (AA) - The Asian Development Bank (ADB) has approved a $500 million policy-based loan for Pakistan to support the country's reforms to improve trade competitiveness and export.

According to ADB statement on Wednesday, the bank has also approved a $750,000 technical assistance package to support the preparation and implementation of the program.

“ADB has a 53-year history of strong partnership with Pakistan and we are pleased to be in a position to provide this important support for the country’s economic reform program,” said ADB Vice-President Mr. Shixin Chen.

“The Trade and Competitiveness Program focuses on addressing structural issues obstructing Pakistan’s export competitiveness through reforms in the areas of tax and tariff rationalization, as well as institutional strengthening. Moving forward, ADB is committed to providing wide-ranging support to strengthen Pakistan’s economy and reduce the risk of external economic shocks.” Chen added

Supported by the International Monetary Fund, ADB, and other development partners, Pakistan has now committed to a range of structural reforms to the country’s trade environment to improve its export performance, reduce the current account deficit, and drive economic growth.

“Trade is an important pillar in Pakistan’s overarching development objective to foster economic stability and sustainable high growth,” said ADB Director General for Central and West Asia Mr. Werner Liepach.

He added that the Trade and Competitiveness Program will help define and implement key reforms to help tackle these development challenges and bring livelihood opportunities to the people of Pakistan.”

In a separate statement, Pakistan Minister for Economic Affairs Muhammad Hammad Azhar acknowledged ADB’s support for Pakistan.

"ADB’s policy-based lending will not only strengthen the foreign exchange reserves but will also provide fiscal space to the government and boost economic activities in the country", Azhar hoped