Pakistan received $500 million from the Asian Development Bank (ADB) which would boost the country''s foreign reserves, said Minister for Economic Affairs Hammad Azhar. Azhar tweeted, "The Asian Development Bank has revived its programme based financing for Pakistan that was suspended 2 years ago in the last government''s term due to extremely high ''macroeconomic imbalances'' that had arisen at that time. The first tranche of USD 500 million has been received in this regard and this will add to boosting our forex reserves."
The ADB on August 7 approved a $500 million policy-based loan to support the government of Pakistan''s reforms to improve trade competitiveness and exports as a defence against external shocks and to help finance the country''s trade deficit. The ADB also approved a $750,000 technical assistance package to support the preparation and implementation of the programme.
Muhammad Hammad Azhar, Minister for Economic Affairs witnessed the loan signing of Trade & Competitiveness Programme (Sub programme - 1). The Trade and Competitiveness Programme will introduce important tariff and tax-related policy reforms to support Pakistan''s export industries and increase their competitiveness internationally and also to strengthen key trade facilitating institutions such as accreditation bodies, the EXIM Bank of Pakistan, and the National Single Window.
Minister for Economic Affairs said that Pakistan''s exports are concentrated in less sophisticated and lower value-added products and lack diversification and innovations. The minister expressed that ADB''s policy-based lending will not only strengthen the foreign exchange reserves but will also provide fiscal space to the government and boost economic activities in the country.
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