ADB and Pakistan ink $1.2 billion loan deal,
The Asian Development Bank (ADB) has officially signed a
$1.2 billion loan agreement with Pakistan, as confirmed by ADB officials on
Wednesday.
This agreement, inked on December 15, encompasses funding
aimed at budget financing and projects dedicated to domestic resource
mobilization. Notably, six projects within this framework are specifically
designed to empower women economically.
A significant portion, at least one-third of the funds, will
be directed towards budget financing, addressing stalled financing pipelines
following an agreement with the International Monetary Fund (IMF). The Economic
Affairs Division (EAD) and ADB finalized the loan agreements on the
aforementioned date, with an EAD official affirming the agreement. It was
emphasized that ADB would allocate $400 million from the total fund to provide
budget support through two separate agreements.
ADB
to work closely with Pakistan in addressing its economic challenges
World Bank greenlights $350 million financing
Simultaneously, the executive directors' board of the World
Bank has granted approval for $350 million in financing for the Second
Resilient Institutions for Sustainable Economy (RISE-II) Operation. This
financing is intended to fortify fiscal management and promote competitiveness
for sustained and inclusive economic growth in Pakistan.
Najy Benhassine, the World Bank country director for
Pakistan, underscored the urgent need for fiscal and structural reforms in
Pakistan to restore macroeconomic balance and establish the groundwork for
sustainable growth. He explained that RISE-II represents a crucial step in a
series of reforms focusing on tax, energy, and business climate to enhance
revenue generation, refine expenditure targeting, and stimulate competition and
investment.
World
Bank Board to decide on $350 million RISE-II project for Pakistan in December
RISE-II aims to bolster fiscal management by enhancing
fiscal policy coordination, improving debt transparency and management,
strengthening property taxation, and enhancing the financial viability of the
power sector. Additionally, the operation strives to encourage growth and competitiveness
by reducing the cost of tax compliance, enhancing financial sector
transparency, promoting digital payments, and facilitating exports through
reduced import tariffs.
Derek HC Chen, the task team leader of the operation,
emphasized that based on the foundations laid by RISE II and parallel support
from other international financial institutions, Pakistan has a unique
opportunity to address long-standing structural distortions in its economy post
the upcoming general elections. Failing to capitalize on this opportunity, he
warned, could potentially push the country back into stop-and-go economic
cycles.
Source: Geo TV