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Pakistan receives $1 billion in loans to fight pandemic from ADB

Christian Fernsby |
Pakistan received $1 billion loans to prop up its struggling economy that has taken a hit from coronavirus restrictions, the central bank announced.

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Topics: PAKISTAN    ADB   

The Asian Development Bank (ADB), and the World Bank each have lent $500 million to cash-strapped Pakistan.

"SBP [State Bank of Pakistan] has received USD 1 bn [$1 billion] today with USD 500 mn [$500 million] each from ADB and WB," the SBP said in a Twitter post, without providing more details.

The ADB had signed an agreement for a $500 million loan with Pakistan on June 19 following the World Bank and Asian Infrastructure Investment Bank each sign loan agreements with the government for the same amount, totaling $1.5 billion, in May.

The ADB’s loan was first approved on June 10 and is financed under the bank’s coronavirus Active Response and Expenditure Support program, according to an ADB statement last week.

The fresh loans will help Islamabad deliver social protection programs to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs as the country fights COVID-19.

Coronavirus hit Pakistan’s growth at a critical juncture in its macroeconomic recovery process. The pandemic is expected to lead to a sharp decline in growth, revenue collection, and significant job losses in Pakistan, the statement said.

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