Islamabad (Commerce Desk): The government has decided to secure a $1 billion budget support loan to address environmental disasters, while a $40 million project has been deferred due to concerns over expensive procurement.
The Central Development Working Party approved the loan under the Asian Development Bank’s Climate Disaster Resilience Program. Out of the total amount, $500 million will be released immediately, while the remaining funds will be reserved for emergency situations.
According to officials, the primary aim of the funding is to ease pressure on foreign exchange reserves, and the funds are expected to be received before June. The government is also in contact with other friendly countries for additional financial support.
Documents state that the loan will be utilized to strengthen institutional capacity, implement the national disaster management plan, establish emergency centers, and support flood prevention projects.
Meanwhile, a $40 million Public Resource project by the World Bank has been postponed after objections were raised over costly procurement, including unusually high prices for laptops, computers, and furniture.
Planning Minister Ahsan Iqbal has formed a committee to investigate the matter, which will review expenditures and the procurement process.
