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HomeLatest NewsEconomyPakistan and ADB Agree to a $475 Million Flood Loan

Pakistan and ADB Agree to a $475 Million Flood Loan

Pakistan and ADB agree to a $475 million flood loan

ADB and Pakistan sign $475M loan deal for flood relief on December 15.

Bringing the total amount of loan agreed with the ADB this year to $2.7 billion, according to the country’s economic affairs minister on Thursday.

Large portions of the country were submerged by floods brought on by unusually heavy monsoon rains and glacier melt earlier this year, which resulted in nearly 1,700 fatalities, the majority of them children and women.

According to Minister Ayaz Sadiq, the 1% interest rate for a 40-year term is agreed upon for the ADB loan.

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“There is a perception that God forbid, Pakistan may go bankrupt or is experiencing a financial crisis. Nothing like that exists “In a recorded message, Sadiq remarked. “The ADB wouldn’t have signed these loans with us today if there had been such a circumstance.”

Pakistan’s low foreign exchange reserves, which are just enough to cover a month’s worth of imports, are making it difficult for the country to pay its external financial obligations. Inflation has been at a record high for decades.

 

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