ADB to approve loans worth $1.3bn to Pakistan in November

The Asian Development Bank (ADB) has assured to give loans to Pakistan so that the debt-ridden economy of the country may incorporate reforms especially in its energy sector.

The loans worth USD one billion for budgetary support and USD 300 million for energy sector reforms will be approved by November after conditions attached to the subject are fulfilled, The Express Tribune reported.

However, ADB Vice President Shixin Chen, during his meetings with Prime Minister Imran Khan and Federal Minister for Economic Affairs Hammad Azhar on Thursday raised the issue of the slow implementation of schemes that further delayed the release of billions of dollars approved under project loans.

Ever since the Indian Parliament decided to revoke the especially accorded constitutional status of Jammu and Kashmir, Pakistan has been ranting up its diabolic rhetoric of waging of a possible military conflict, including nuclear war, on India.

In the wake of New Delhi's historic decision, Islamabad has further downgraded ties with its neighbour, closed all communication networks and even banned all flights from India from using its airspace.

Pakistan's bluster and threats of hurting India come at a time when its own cash-strapped economy is in a perilous state and is oscillating on the brink of being collapsed.

Officials familiar with the matter were quoted as saying that Chen had complained about delays in both approval of new projects and implementation on the approved schemes, which was delaying the approval of the loans.

After the meeting, the prime minister directed the Economic Affairs Division to fast-track the processing and implementation of the ADB projects to facilitate its support towards the economic prosperity of Pakistan and its citizens, according to a statement issued by the Prime Minister Office.

Chen assured that the ADB would support Pakistan and finance projects according to the development priorities of the government of Pakistan, a Ministry of Finance handout stated.

This development comes after IMF's Resident Representative for the country, Teresa Daban Sanchez, earlier this month said that Pakistan's failure to exit from Financial Action Task Force's (FATF) grey list might pose a risk to the recently approved loan worth USD six billion.

Sanchez stressed that an exit from the FATF list is crucial for securing private sector credit to meet external financing needs. She also added that the FATF greylisting "undermines capital inflows in addition to affecting the private sector.