October 26, 2022 (MLN): The Asian Development Bank (ADB) has finally released S1.5 billion under its Building Resilience with Active Countercyclical Expenditures (BRACE) Program to support Pakistan's economy at crucial times.
The amount will be deposited to the State Bank of Pakistan (SBP) following the opening of banks in New York.
ADB on Monday signed an agreement with Pakistan to provide the said amount for budgetary support.
The loan will help fund the government’s $2.3bn countercyclical development expenditure program designed to cushion the impacts of external shocks, including the Russian invasion of Ukraine.
Pakistan’s recovery from the COVID-19 pandemic has been impeded by external shocks and increasing business costs and rising living expenses are affecting millions of Pakistanis, especially the poor and vulnerable.
ADB’s program will help the government manage the impacts of high prices, increasing food insecurity, slowing business activity, and reducing income for vulnerable groups, many of whom are also reeling from the devastating floods.
The much-needed financing will provide the required fiscal space for the government to implement its countercyclical development expenditure package, which is designed to target the poorest families in Pakistan who are often disproportionately affected in times of crisis.
The government’s support includes specific measures to promote gender empowerment and climate change adaptation, which have become even more important in light of the recent floods.
