Pakistan secures USD 330 million loan from Asian Development Bank
Pakistan Secures Loan from Asian Development Bank
On Saturday, the Pakistan government signed a USD 330 million loan agreement with the Asian Development Bank (ADB) for the Integrated Social Protection Development Programme (ISPDP). The agreement was signed by Economic Affairs Secretary Kazim Niaz and ADB Country Director Emma Fan. Niaz highlighted the importance of this funding in enhancing institutional capacity and improving access to essential services like education and healthcare. Emma Fan expressed ADB's commitment to supporting Pakistan in strengthening its social safety nets, promoting inclusive growth, reducing poverty, and expanding healthcare access.
World Bank Cancels Budget Support Loan
In contrast, the World Bank cancelled a budget support loan of over USD 500 million to Pakistan due to unmet conditions, including revising power purchase agreements under the China-Pakistan Economic Corridor (CPEC). The World Bank announced it would not provide new budget support loans during the current fiscal year, affecting Pakistan's expectation of receiving USD 2 billion in fresh loans. The cancellation was part of the Affordable and Clean Energy program (PACE-II), initially approved in June 2021. The second tranche was contingent on negotiations with Independent Power Producers, particularly Chinese power plants under CPEC, but no progress was made.
Doubts Revealed
Pakistan
Pakistan is a country located in South Asia, sharing borders with India, Afghanistan, Iran, and China. It has a rich history and diverse culture.
ADB
ADB stands for Asian Development Bank. It is a regional development bank established to promote economic and social development in Asian countries by providing loans and financial assistance.
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects and reducing poverty.
Loan
A loan is money that is borrowed and expected to be paid back with interest. Countries often take loans to fund projects and improve their economy.
Integrated Social Protection Development Programme
This is a program aimed at improving social services like education and healthcare for people, especially those who are poor or vulnerable.
Kazim Niaz
Kazim Niaz is an official in Pakistan, serving as the Economic Affairs Secretary, responsible for managing the country's economic policies and international financial relations.
Emma Fan
Emma Fan is the Country Director for the Asian Development Bank, overseeing the bank's operations and projects in Pakistan.
China-Pakistan Economic Corridor
The China-Pakistan Economic Corridor (CPEC) is a collection of infrastructure projects in Pakistan, funded by China, aimed at improving trade and connectivity between the two countries.
Fiscal year
A fiscal year is a one-year period that governments and businesses use for accounting and financial reporting. It may not always align with the calendar year.
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