The Asian Development Bank (ADB) is set to consider a $500 million loan to Pakistan, aimed at supporting environmental protection and natural disaster resilience initiatives.
ADB’s board will review the loan proposal on October 29, according to the Finance Ministry.
The announcement was made in a meeting in Washington between ADB President Masatsugu Asakawa and Finance Minister Muhammad Aurangzeb. During the meeting, Asakawa indicated the provision of $500 million in loans and emphasized ADB's commitment to supporting Pakistan’s development efforts.
The finance minister expressed appreciation for the bank’s ongoing contributions, specifically highlighting ADB’s exemption of Pakistan from excess surcharges over the next three years. Aurangzeb also praised ADB’s active role in Pakistan’s policy-based loan programs, which he noted are vital for the country’s economic stability.
The minister discussed the expected early completion of ADB's Country Partnership Framework, which will serve as a roadmap for ongoing developmental collaboration. Both leaders emphasized the importance of regional cooperation and the need to strengthen Pakistan’s domestic revenue generation.
On the other hand, Finance Minister Aurangzeb met with representatives from Moody's Credit Rating Agency and the US Export-Import Bank (EXIM) in Washington. The minister thanked Moody’s for recently upgrading Pakistan’s credit rating to CAA2.
The two sides discussed debt sustainability and monetary policy in the meeting, which was also briefed on dealing with external vulnerabilities, foreign exchange reserves and fiscal discipline. They also talked about revenue situation, government capacity and the strength of financial markets.
In a separate meeting with Reta Jo Lewis, president of the US EXIM Bank, Aurangzeb discussed potential partnerships in Pakistan’s energy, minerals, and IT sectors. Lewis assured that US EXIM Bank would provide the necessary data to assess financing opportunities for entry into Pakistan, marking an additional step toward enhanced bilateral cooperation.
