Islamabad (Commerce Desk) The Asian Development Bank has signaled providing up to $1 billion in additional financial assistance to Pakistan and has approved an $800 million package.
According to officials, the approved package includes $300 million in loans and $500 million in guarantees. The aim of this initiative is to reduce the budget deficit and ease the burden of public debt.
The bank’s annual report stated that investment in basic services and development projects in Pakistan remains limited due to financial constraints. It added that the program will also focus on improving the tax system and revenue collection.
It was further reported that $350 million has been allocated to increase women’s economic inclusion, while there is a significant gap in women’s financial participation in the country.
The report described climate change as a major threat to the region, noting that heavy rains, floods, and glacier melting are also affecting Pakistan. In this context, $250 million from the Green Climate Fund is being used to improve water and agricultural systems.
The Asian Development Bank has also approved a modern financing package for a copper and gold mining project in Pakistan.
