Citing sources from the central bank, the Asian Development Bank (ADB) transferred a $1.5 billion loan to Pakistan on Wednesday.
ADB and Pakistan inked a contract on Monday for the provision of a $1.5 billion loan for budgetary support as well as assistance with flood-related rehabilitation and reconstruction.
The loan would increase foreign exchange reserves and stop the devaluation of the rupee.
With the transfer of the ADB burden, Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) have reached $9 billion.
As of October 14, the nation’s total foreign exchange reserves were at $13.25 billion, which included SBP’s holdings of $7.597 billion, or almost five weeks’ worth of restricted imports.
The $1.5 billion ADB loan is intended to encourage employment for people in the midst of devastating floods and disruptions to the global supply chain while also promoting food security and social protection.
Following the signing of the loan agreement, the ADB released a statement saying that the funding will give the government the fiscal room to breathe it needs to implement its package, which is intended to help Pakistan’s poorest families, who are frequently disproportionately impacted during times of crisis. According to the bank, the government’s assistance includes specific initiatives to encourage gender empowerment and climate change adaptation, which have grown even more crucial in light of the most recent floods.
