ISLAMABAD, (TDI): The Asian Development Bank (ADB) has committed to providing Pakistan with $2 billion annually in new loans, as the country seeks half of this amount on concessional terms due to challenges in securing cheaper credit amid deteriorating ratings.
This assurance was made by ADB President Masatsugu Asakawa during his meetings with Pakistani officials, according to the Ministry of Economic Affairs.
Over the next four years, this financial support will total $8 billion. Of the annual $2 billion, $1 billion will be offered at a concessional rate of 2 percent.
The Manila-based bank plans to disburse $2 billion each year from 2024 to 2027, with approximately $1 billion being provided under its concessional window, officials stated on Monday.
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During his visit, Asakawa also met with President Asif Ali Zardari in Islamabad. He reaffirmed the ADB’s commitment to supporting infrastructure development and climate-resilient initiatives in Pakistan.
Asakawa acknowledged recent signs of economic recovery and stabilization in the country.
In response, President Zardari emphasized the need for increased support from the ADB to combat the impacts of climate change, citing the severe climate events and devastating floods of 2022 that significantly affected the economy.
Read More: President Meets ADB Country Director
Zardari briefed the ADB President on the economic and climate-related challenges facing Pakistan and expressed appreciation for the bank’s support towards the country’s socio-economic development.
