Pakistan News / Pak will sink further into the debt trap, ADB will give this much new loan every year

The Asian Development Bank (ADB) has assured debt-ridden Pakistan of a new loan of $2 billion annually. Out of this loan to be given between 2024-2027, one billion dollars will be at concessional rates. ADB also promised support in public-private partnership and climate promotion.

Vikrant Shekhawat : Sep 18, 2024, 06:00 AM

Pakistan News: Pakistan, which is already burdened with heavy debt, is now going to take more loans. The Asian Development Bank (ADB) has assured Pakistan of a new loan of two billion US dollars annually to overcome the economic crisis. This information came to light on Tuesday, in which it was told that ADB President Masatsugu Asakawa gave this assurance during talks with Pakistani officials on Monday.

Expected to be received from 2024 to 2027

The Manila-based ADB has planned to provide financial assistance of two billion US dollars every year for Pakistan from 2024 to 2027. This four-year package will total eight billion US dollars. Under this package, ADB will provide about one billion dollars at a fixed rate of two percent under its 'concessional window'. This assistance will be released to enhance public-private partnership, climate and disaster resilience.

Praise on economic reforms

ADB President Masatsugu Asakawa has praised the tough economic reforms undertaken by the Pakistan government. He discussed the country's development priorities and the necessary steps taken for economic stability. Asakawa met Economic Affairs Minister Ahad Cheema and confirmed the positive effects of the reforms.

Appointment of new leadership

ADB has appointed Emma Fan as a new country director for Pakistan. Fan, a New Zealander of Chinese origin, will replace outgoing country director Yong Ye next month. Meanwhile, the International Monetary Fund (IMF) has also appointed Turkish citizen Mahir as the new country head. Mahir will take charge in December.

Pakistan and ADB relations

Pakistan has been a founding member of ADB since 1966. This new financial package is expected to give a boost to Pakistan's economy, although it will further increase the debt burden. This move by ADB will prove to be an important economic support for Pakistan, but it also makes it clear that more hard work is still needed to stabilize and improve Pakistan's economy.

With this new financial assistance, Pakistan will get another chance to move its development programs and economic reforms in the right direction. However, it will also depend on the efficiency of government policies and management in implementing it, how this loan works for the stability and development of the country.