ADB and Pakistan who are short of money have completed an emergency Covid-19 loan worth USD 305 million to help the country buy medical equipment and distribute money to poor women, according to media reports on Wednesday.
The Asian Development Bank will extend loans on commercial terms, The Express Tribune reported.
Last month, Pakistan received an emergency loan of USD 1.39 billion from the International Monetary Fund (IMF) and USD 200 million assistance from the World Bank (WB).
While the IMF loan is to increase Pakistan’s foreign exchange reserves after the coronavirus crisis, the World Bank’s assistance is focused on supporting emergency preparedness and response in the health sector.
Explaining the need for ADB loans, Deputy Chairman of the Pakistan Planning Commission Jahanzeb Khan told The Express Tribune that the government was looking for ways to help those directly affected by the virus but until now could not ask for financial assistance. Pakistan sent an official loan request to ADB in March.
The USD 305 million package will be combined under the Pakistan National Emergency Preparedness and Response Plan (NEPRP) for Covid-19 which is under the Planning Commission.
NEPRP is valued at USD 588 million, which includes a World Bank loan of 238 million USD.
Of the USD 305 million loan, USD 200 million for social protection for vulnerable parts – cash transfers and unconditional cash transfer installments – and USD 105 million for health emergencies such as caring for shops.
The new corona virus that first appeared in the Chinese city of Wuhan has claimed more than 250,000 lives and infected 3.6 million people worldwide.
In Pakistan, this virus has killed 526 people with 22,413 confirmed infections.
This virus also has a negative impact on the country’s economy. On Tuesday, Pakistan called on G-20 member states to ease debt with a commitment not to contract new non-concessional loans except those permitted under IMF and World Bank guidelines.
The country’s foreign currency reserves have dropped to a four-month low of USD 10.97 billion on April 10, 2020.
Reserves have been partially depleted due to the withdrawal of around $ 2.69 billion in capital by short-term foreign investors from the Pakistan debt market over the past five to six weeks.
to request modification Contact us at Here or [email protected]