Govt, ADB Sign $500mn Loan Agreement

Govt, ADB Sign $500mn Loan Agreement

ISLAMABAD: The Government of Pakistan and Asian Development Bank (ADB) signed a trade and competitiveness programme (Subprogram – 1) amounting to USD 500 million on Wednesday.

Minister for Economic Affairs Hammad Azhar witnessed the signing of the loan agreement.

Economic Affairs Division Secretary Noor Ahmed and Asian Development Bank (ADB) country director Xiaohong Yang signed the agreement.

This programme will help Pakistan to promote macroeconomic stability, improve export performance, and boost economic growth by facilitating improved trade competitiveness.

Under the programme, the government has introduced important tariff and tax-related policy reforms to support Pakistan’s export sector and improve its competitiveness internationally and strengthen key institutions involved in facilitating trade, including accreditation bodies Export-Import Bank of Pakistan (EXIMBP) and the National Single Window (NSW).

Hammad Azhar acknowledged ADB’s support for Pakistan.

He highlighted that Pakistan’s exports are concentrated in less sophisticated and lower value-added products and lack diversification and innovations.

The minister said that ADB’s policy-based lending will not only strengthen the foreign exchange reserves but will also provide fiscal space to the government and boost economic activities in the country.