Pakistan is facing a serious economic crisis with short supplies of foreign currency reserves and stagnating growth in recent years.Since assuming power in August 2018, Prime Minister Imran Khan has been appealing to close allies like China and Saudi Arabia to provide concessional loans to reduce the size of the bailout package that Pakistan may need from the International Monetary Fund (IMF).
The ADB’s quick dispersing special policy-based loan is part of a multi-donor economic reform programme led by the IMF to stabilise Pakistan’s economy after a major deterioration in its fiscal position in 2018, according to a statement by the Manila-based regional lender.”ADB is committed to providing wide-ranging support to strengthen Pakistan’s economy and reduce the risk of external economic shocks,” said ADB Director General for Central and West Asia Werner Liepach.While USD 1 billion has been extended to Pakistan to improve its current account deficit, strengthen its revenue base, USD 300 million has been extended for the energy programme, another ADB press release said.