ADB approves 300-mln-USD loan for macroeconomic stability in Pakistan

The Asian Development Bank (ADB) approved a 300-million-U.S. dollar policy-based loan targeting macroeconomic stability in Pakistan by improving trade, the ADB said on Friday.

The loan aims at recovering Pakistan's current account deficit in a sustained manner and continue to facilitate export diversification, the ADB said in a statement, adding that it will introduce tariff and tax-related policy reforms to improve Pakistan's international competitiveness and further strengthen key institutions.

The new financing falls under subprogram-2 of the Trade and Competitiveness program. Under the first phase, the ADB helped the government usher in key reforms, including reducing or abolishing tariffs and ad hoc duties on a large number of raw materials and intermediate goods, according to the statement.

ADB Principal Public Management Specialist Hiranya Mukhopadhyay said that while COVID-19 hit Pakistan at a critical point in its macroeconomic recovery, the government's ongoing efforts to ensure stability have started showing encouraging results this fiscal year.