Pak finance minister thanks ADB for $500m climate loan

The finance minister hoped for an early completion of the ADB’s country partnership framework….reports Asian Lite News

Pakistan’s Finance Minister Muhammad Aurangzeb expressed gratitude for the Asian Development Bank’s (ADB) USD 500 million loan to support Pakistan for climate protection, ARY News reported.

Pakistan’s FM called on ADB President Masatsugu Asakawa in Washington and appreciated the bank’s support for Pakistan’s development agenda and approval of USD 500 million policy-based loan for climate protection and safety programme for natural disasters in the country.

During the meeting, both officials discussed key areas of collaboration, including increasing Pakistan’s revenues, fostering regional cooperation, and ensuring the timely completion of the ADB office in Islamabad, as per ARY News.

The finance minister hoped for an early completion of the ADB’s country partnership framework. The ADB Board, in its meeting on October 29, will consider Pakistan’s request for new loans.

Meanwhile, Pakistan is also seeking an additional USD 2 billion from the International Monetary Fund (IMF) to tackle the devastating impacts of climate change, as per a report in ARY News.

Earlier, the IMF had raised concerns over Pakistan’s ability to repay its external debt, labelling it as “fragile,” Geo News reported.

The IMF had also issued a warning, saying that Pakistan’s ability to repay debts is subject to “major risks” and “heavily hinges on” the implementation of policy and timely external financing.

Earlier on September 25, the Executive Board of the International Monetary Fund (IMF) authorised Pakistan’s 37-month Extended Fund Facility (EFF) agreement, which is valued at around USD 7 billion.

ADB was established in 1966 and it is owned by 68 members, 49 of whom are from the region.

Meanwhile, in a bid to address its persistent external financing issues, Pakistan has formally requested a supplementary loan of 10 billion yuan (CNY) (approximately USD 1.4 billion) from China.

The announcement was made on Saturday, underscoring the fiscal pressures the nation continues to face, the Express Tribune reported.

During a meeting with China’s Vice Minister of Finance, Liao Min, Pakistan’s Finance Minister Muhammad Aurangzeb urged the Chinese side to elevate the limits under the Currency Swap Agreement to CNY 40 billion. As stated by the Ministry of Finance, Pakistan has already fully utilised the existing CNY 30 billion (USD 4.3 billion) Chinese trade facility for debt repayment and is now seeking to raise this limit by an additional CNY 10 billion, which translates to USD 1.4 billion based on current exchange rates.

The finance minister’s appeal occurred on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank. If approved by Beijing, the total facility would amount to approximately USD 5.7 billion. (ANI)

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