Cash-strapped Pakistan inks deal with ADB, to get USD 3.4 billion
Islamabad: Pakistan will get a loan of USD 3.4 billion from the Asian Development Bank for budgetary support, Prime Minister Imran Khan's adviser on finance has said as the cash-strapped country tries to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy.
Of the total amount, USD 2.1 billion would be released within a year of the agreement between the ADB and the finance ministry, Federal Minister for Planning, Development and Reforms Khusro Bakhtiar was quoted as saying by Dawn.
The loan from the Philippines-headquartered global finance institution was "on a concessional rate", the minister said.
Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh said on Twitter that the ADB will provide USD 3.4 billion to Pakistan for budgetary support.
"USD 2.2 billion will be released this fiscal year (FY), starting in the first quarter of FY 2019-20. This will help the reserve position and the external account," he said in a tweet.
ADB's Director General Werner Leipach and its country director Xiaohong Yang called on Shaikh and discussed with him matters relating to ADB's upcoming operations in Pakistan, the finance ministry said in a statement.
"The director general (Leipach) briefed the adviser that in addition to strong project portfolio, the bank is also keen to provide balance of payments financing to support the government of Pakistan's structural reform agenda," according to the statement.
Pakistan seeks help to overcome a ballooning balance of payments crisis.
Last month, it reached an agreement in principle with the International Monetary Fund (IMF) for a three-year, USD 6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy.
The ADB financing would come on top of the IMF loan.
In April, three influential US lawmakers urged the Trump adminstration to oppose the proposed multi-billion bailout package being sought by Pakistan from the IMF arguing it could be used to repay the Chinese debt.
Chine is investing heavily in Pakistan under the USD 60 billion China-Pakistan Economic Corridor (CPEC).
Launched in 2015, CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Mitchell scripts New Zealand's series-levelling win
Rajkot (PTI): Daryl Mitchell (131) struck a composed unbeaten hundred and shared a 162-run stand with Will Young (87) to guide New Zealand to a series-levelling seven-wicket win over India in the second ODI here Wednesday.
Chasing a stiff 285 on a slowish pitch, New Zealand romped home in 47.3 overs with Mitchell anchoring the chase.
The series-decider will be played in Indore on Sunday.
Earlier, KL Rahul hit a combative 112 to lead India to a competitive 284 for seven.
India were off to a confident start with Rohit Sharma (24) and skipper Shubhman Gil (56) adding 70 runs for the first wicket but Kiwi spinners snatched the momentum with disciplined bowling in middle overs.
Virat Kohli (23), Ravindra Jadeja (27) got starts but could not convert them into big knocks.
Brief Scores:
India: 284 for 7 in 50 overs. (KL Rahul 112 not out, S Gill 56; Kristian Clarke 3/56).
New Zealand: 286 for 3 in overs. (D Mitchell 131 not out, W Young 87; P Krishna 1/49).
