The Asian Development Bank (ADB) has approved a policy-based $300 million loan for Pakistan to improve and stabilize the economy.
ADB Principal Public Management Specialist Hiranya Mukhopadhyay said, “While COVID-19 hit Pakistan at a critical point in its macroeconomic recovery, the government’s ongoing efforts to ensure stability have started showing encouraging results this fiscal year.”
He added that the program will support these efforts and help Pakistan to improve its export competitiveness — now more important than ever given the impacts of the pandemic.
Pakistan will likely recover the current account deficit with the help of this program. It will also continue helping the country’s export diversification.
The ADB program mentions tariff and tax-related reforms in Pakistan. It has been noted that Pakistan has witnessed a rise-and-fall pattern of export growth since 2004, reflecting underperformance in its export industry and long-term decline in export competitiveness. This has been compounded by the lost export growth due to coronavirus.