Govt okays expensive $500m ADB loan

The government, on Monday, greenlit the acquisition of a hefty $500 million loan from the Asian Development Bank (ADB) aimed at fostering an ‘enabling environment to attract private investment’. This strategy, while addressing immediate fiscal requirements, is also driving Pakistan further into the debt trap. The Central Development Working Party (CDWP) endorsed the “concept proposal” for the $500 million loan under the Promoting Sustainable Public-Private Partnership Programme, according to the Planning Ministry. Chaired by Deputy Chairman Dr Jehanzeb Khan, the CDWP meeting facilitated this decision. The loan will be acquired as budget support, and in exchange, Pakistan has revised existing policies, developed new ones, and committed to establishing two funds. Once all conditions are met, the ADB is anticipated to present the case to its board for the approval of the initial $250 million tranche.