Pakistan signs USD 350 million loan agreement with ADB

Pakistani Prime Minister Shahbaz Shariff. Pic/Filepic

Pakistan signed a USD 350 million loan agreement with the Asian Development Bank (ADB). According to Radio Pakistan, the loan has been granted in order to boost women's financial inclusion and economic empowerment.

As reported by PTI, the agreement under the Women Inclusive Finance (WIF) Sector Development Programme was signed on Tuesday by Sabina Qureshi, who is the Additional Secretary of the Economic Affairs Division, and Dinesh Raj Shiwakoti, Head of the Project Administration Unit, Radio Pakistan reported.

While addressing the loan granted to Pakistan by ADB, Radio Pakistan also stated, "This programme will provide ample opportunities to women for better access to financial services, expand business opportunities, and create new employment opportunities."

Sub-programme II of WIF focuses on four key reform areas. These include creating an enabling policy and regulatory environment for women's financial inclusion, increasing the finances for women, strengthening women's entrepreneurship capabilities, and promoting inclusive and equitable workplaces within the financial sector.

The agreement also reflects the Government of Pakistan's commitment to make women an active part of the national economy, Radio Pakistan said.

It also emphasised that "This initiative will not only strengthen women's economic empowerment but also pave the way for a more inclusive, equitable and prosperous future."

Furthermore, according to the Economic Survey 2024-25 released on June 9, Pakistan's debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, indicating that the cash-strapped country's economy is likely to grow by 2.7 per cent this year.

Pakistan and the International Monetary Fund (IMF) signed a USD 7 billion External Fund Facility (EFF) loan last year, and the country has so far received two tranches, including the second one disbursed in May this year.

With all the loans already burdening the country, Pakistan is now aiming to secure USD 3.3 billion in the form of two foreign loans. The two foreign loans which Pakistan is eyeing are syndicated loans and refinancing of commercial loans from Chinese banks. Pakistan is looking to get these loans sanctioned within the next few days.

(With PTI Inputs)