ADB approves $1bn emergency loan for Pakistan

The loan was approved after the Pakistan government implemented a series of reforms and actions supported by the IMF to improve the country's current account deficit, strengthen its revenue base, and protect the poor against the social impact of the economic crisis.

Islamabad: The Asian Development Bank has approved an emergency loan of $1 billion for Pakistan to provide immediate support to the country's finances and help strengthen a slumping economy, according to a statement issued on Friday.

The quick dispersing loan is part of a multi-donor economic reform program spearheaded by the International Monetary Fund to stabilize the country's economy which crumbled mid-2018, the statement said.

The loan was approved after the Pakistan government implemented a series of reforms and actions supported by the IMF to improve the country's current account deficit, strengthen its revenue base, and protect the poor against the social impact of the economic crisis.

Commenting on the loan, ADB Director General for Central and West Asia Werner Liepach maintained that the bank was committed to providing Pakistan support so that it may strengthen its economy.

The development comes after the ADB in September reaffirmed that the country's economy is expected to grow slower than last year with GDP growth projected at 2.8 percent in the fiscal year 2020.

It highlighted that rising inflation was mainly reflecting currency depreciation and a considerable increase in domestic fuel prices.