Islamabad: The Asian Development Bank (ADB) has provided its approval to the issuance of a USD 300 million loan grant to facilitate the development of Pakistan’s capital markets and for meeting the country’s external financing by building foreign exchange reserves of the country, a news source reported on September 29.
The financial assistance is expected to help support competitive capital markets and encourage private sector investment. With this amount, the total loan provided by the international lender for capital market reforms is seen to rise above USD 1 billion. The current amount of USD 300 million is part of a larger deal of USD 600 million out of which USD 300 million will be provided next year.
According to reports, the loan and policy reforms are also aimed at facilitating the market for foreign investors. The loan is also meant to increase Pakistan’s stock market capitalisation from the current 30% of the gross domestic product (GDP) to 40% pf the gross domestic product.
