The Asian Development Bank (ADB) has approved a policy-based loan of US $ 300 million to help promote macroeconomic stability in a cash-strapped Pakistan.
Pakistan announced a $ 80 million debt relief from 14 G20 member countries, a week after ADB’s headquarters in the Philippines announced it.
Pakistan, which owes $ 25.4 billion to G20 countries, the world’s richest group, till August this year. Hiranya Mukhopadhyay, Principal Public Management Specialist of the Asian Development Bank, said the $ 300 million loan will improve trade competitiveness and export diversification.
Mukhopadhyay said in a statement, Covid-19 has hurt Pakistan while being at a critical point of comprehensive economic recovery. The government’s efforts to ensure stability in Pakistan had encouraging results. He said that ADB’s program would improve Pakistan’s export competitiveness, which would help in correcting its current account deficit.