A Karakoram bond is an offshore bond denominated in Pakistan rupees and settled in USD, listed on a major stock exchange and settled through an international central securities depositary.
The ADB will provide the loan between 2021 and 2025. Out of the total loan program, $6.3 billion is expected to be disbursed over the next three years.
He said that with the pre-COVID improvements in macroeconomic fundamentals and strong policy response during the pandemic helped us save lives and livelihood of the people.
Southeast Asia faces a bleaker outlook with this year's economic output seen to suffer a deeper slump of 4.4%, before growing 5.2% next year, down from an earlier forecast for 5.5% growth.
“ADB’s program will support these efforts and help Pakistan to improve its export competitiveness—now more important than ever given the impacts of the pandemic.”
The international bond issue pays a 7.50% semi-annual coupon and matures in August 2023. The bonds were arranged by Citigroup Global Markets and sold to European asset managers.
The program will also help fund the acquisition of additional ventilators and COVID-19 protective kits for medical staff, including appropriately sized personal protective equipment for women.
Under the agreement, the Government of Norway will provide a $5.28 million grant to strengthen the emergency response system in Khyber Pakhtunkhwa province amid the coronavirus crisis.