Asian Development Bank (ADB) has transferred a $1.5 billion loan to Pakistan for economic support and rehabilitation of flood-affected people.
Finance Minister Ishaq Dar has stated in a tweet, “ADB has released funds $1.5 billion to Pakistan under BRACE program for the credit of Government of Pakistan’s account with State Bank of Pakistan (SBP).”
Pakistan’s foreign exchange reserves position will be boosted by the funding. The country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) have reached $9 billion after the ADB transfer. Earlier these clocked in at $7.6 billion on October 14. Whereas the reserves held by commercial banks have been $5.65 billion.
Therefore, the net foreign exchange reserves of Pakistan after combing State Bank and commercial banks’ reserves have reached above $13 billion.
ADB signed an agreement with Pakistan to provide a $1.5 billion loan for budgetary support and help flood-related rehabilitation and reconstruction on Monday.
During the agreement signing ceremony, the ADB officials had said that the programme would provide timely liquidity to Pakistan.
The loan would build the foreign exchange reserves and rein in the rupee’s depreciation.
The $1.5bn ADB loan has been aimed to provide social protection, promote food security, and support employment for people amid devastating floods and global supply chain disruptions.
The ADB in a statement has said that after signing the loan agreement the financing will provide the fiscal space to implement its package.
