In the midst of severe floods and disruptions to the world’s supply chains, the Asian Development Bank (ADB) has granted $1.5 billion in financing to assist Pakistan in providing social protection, promoting food security and supporting employment for its citizens.
The loan has been provided under ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE) Program.
ADB Director General for Central and West Asia Yevgeniy Zhukov has said that the external shocks have impeded Pakistan’s recovery from the COVID pandemic. He said that millions of people have been affected due to increasing business and living costs.
Zhukov said that the program will enable Pakistan to manage high prices, food security, slow business activity and reducing income of the vulnerable groups.
This financing from ADB will provide the country with fiscal space so that the government could implement countercyclical development expenditure package so that poor families could be targeted.
Specific measures for promotion of gender empowerment and climate change adaptation will also be included in government’s support. Families receiving cash transfers will be increased from 7.9 million to nine million with this assistance from ADB. It will also help increased number of children enrolled in primary and secondary schools along with enhanced health services’ coverage.
Since 1966, ADB has committed over $37 billion in shape of loans, grants and other forms of financing to promote inclusive economic growth in Pakistan.
