The Asian Development Bank (ADB) on Wednesday approved a $500 million emergency loan for Pakistan, as the government also expects $14 billion in its external debt estimates for the outgoing fiscal year.
According to the Manila-based country, after battling the coronavirus epidemic in the country, ADB approved a $500 million loan to help Pakistan provide social protection programs to the poor and vulnerable, health A poor financial stimulus can be offered to enhance the capabilities and growth of the sector and create jobs. Lending Agency Press Statement
Pakistan had sought anti-medical facilities as part of its budgetary assistance against external shocks to restore growth.
Unlike program loans, no policy metrics are required to receive this assistance.
ADB offers an interest rate of 0.5% in addition to the rates offered by the London Interbank and is available for 10 years.
According to officials at the Ministry of Economic Affairs, behind the three contingency loans provided by the ADB, the total loans approved by the ADB for the outgoing fiscal year are expected to be $2.8 billion, while The estimate is $1.7 billion, according to Ministry of Economic Affairs officials.
ADB lending has also helped manage $14 billion in external debt in the fiscal year 2019-20, an increase of more than $1 1 billion over budget estimates.
Of the $14 billion, $9.3 billion will be used to repay past debts.
For this fiscal year, the government estimated that it would receive $13 billion, including $3 billion in bonds.
However, due to the central bank's preference for foreign currency, the finance ministry did not stop the bond.
The trade finance budget has been raised from $2 billion to $3.4 billion, and additional borrowings from ADB and the World Bank (WB) have filled the gap, ministry officials said.
Pakistan now expects about $2 2 billion from the World Bank, compared to $1.2 billion in budget loans, officials said.
The PTI government, like its predecessor, has relied on non-performing loans.
For the next fiscal year 2020-21, the Ministry of Finance estimates that a total of $15 billion in loans have been received, of which $10 billion is estimated to be spent on repaying mature loans.
ADB's latest $ 500 million loans is to meet social security spending, in addition to maintaining a total foreign exchange reserve of more than $10 billion.
The President of the Asian Development Bank, Masatsugo Asakawa, noted that the epidemic in Kuwait 19 has reached a turning point in Pakistan's ongoing economic recovery program.
He said that ADB is fully committed to supporting Pakistan in this difficult time.
The ADB president observed that the $500 million loans would help close the selected fund's gap as the government implements its anti-class development plan, which includes the country's social safety net and health sector. It also includes capacity building.
Code 19 is expected to lead to a sharp decline in Pakistan's growth, revenue collection, and a significant reduction in employment.
The country's health response has been hampered by the low population health and the insufficient availability of hospital beds.
In the current financial year, Pakistan's economy is expected to contract by 0.4%.
ADB maintained that its Code 19 Active Response and Extensive Support (CARES) program will support various government initiatives, including the payment of cash assistance to 300,000 daily wage workers, of which approximately 23 ٪ Women and 7.5 million families receive cash grants. Sponsorship Social Security Program
The program will also help medical personnel obtain additional ventilators and Coronavirus protection kits, including personalized personal protective equipment for women.
To avoid job losses, the loan will help young entrepreneurs, including at least 25 women, through the government's Youth Entrepreneur Scheme, Successful Youth.
ADB's CARS program will provide $500 million in financing from the Asian Infrastructure Investment Bank and the World Bank's Security Human Investment in parallel with the Foster Transformation (Shift) Development Policy Credit Program.
The CARES program was developed in close coordination with these development partners, the International Monetary Fund, and other bilateral donors.
Under ADB's Countercycle Support Facility, the loan is provided through the COVED-19 Pandemic Response Option (CPRO).
The CPRO, announced April 13, was established as part of ADB's $20 billion extended assistance to developing member countries to respond to Code 19.
The CARES program is part of an integrated ADB collaboration package that supports the Government of Pakistan's immediate efforts to reduce the significant negative health, social and economic impacts of the coronavirus epidemic.
On May 19, ADB approved an emergency relief loan of $300 million to strengthen Pakistan's public health response to epidemics and meet the basic needs of the weaker sections of society.
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