ISLAMABAD: Ishaq Dar, the federal minister for finance and revenue, revealed that the Asian Development Bank (ADB) has deposited $1.5 billion with the State Bank of Pakistan (SBP).
Following floods and other interruptions to the global supply system, the deposits will assist strengthen social protection, advance food security, and generate employment.
“Under the BRACE [programme], the Asian Development Bank has made $1.5 billion available to Pakistan for the credit of the government’s account with the State Bank of Pakistan.” Dar tweeted the information.
The loan was granted as part of the Building Resilience with Active Countercyclical Expenditures (BRACE) Program of the ADB. It is anticipated to contribute to the government’s $2.3 billion countercyclical development expenditure programme, which is intended to lessen the effects of external shocks like the Russian invasion of Ukraine.
According to a statement from ADB Director General for Central and West Asia Yevgeniy Zhukov, “external shocks have hampered Pakistan’s recovery from the COVID-19 pandemic.”
Millions of Pakistanis, especially the poor and the most vulnerable, are being negatively impacted by increased living and business costs. The ADB’s programme will assist the government in reducing the income for vulnerable populations, many of whom are still suffering from the terrible floods, as well as the effects of high prices, rising food insecurity, sluggish business activity, and all of these factors.
The finance from ADB would give the government the financial breathing room it needs to implement its countercyclical development spending programme, which is intended to help Pakistan’s poorest households, who are sometimes disproportionately impacted by crises.
The government’s assistance includes particular initiatives to advance gender empowerment and climate change adaptation, both of which have grown increasingly crucial in light of the most recent floods.
The assistance from ADB will help increase the number of families receiving cash transfers from 7.9 million to nine million, boost the enrollment of kids in primary and secondary schools, and improve the geographic reach of health services and nutritional supplies for infants under two years old and expectant and nursing mothers.
In response to recent floods in Pakistan that have impacted over 33 million people and severely damaged infrastructure and agriculture, ADB is providing $1.5 billion in countercyclical support as part of a sizable response package.