Islamabad: The government is all set to receive USD 5 billion in funds from various international creditors during the upcoming financial year (FY2020-21), a news source reported.
To this effect, the World Bank (WB) will redirect USD 1 billion existing funds to Pakistan in the coming 15 months and provide additional finances of USD 2 billion. These funds will be utilised to ensure Pakistan’s recovery from COVID-19 pandemic and restore livelihoods through public works programmes.
On Monday, a meeting was held in Economic Affairs Division (EAD), which was attended by Minister for Economic Affairs Makhdum Khusro Bakhtyar, Asian Development Bank (ADB) Country Director, European Union (EU) Ambassador, United Nations (UN) Resident Coordinator, World Bank (WB) Country Director, and a representative of Islamic Development Bank (IDB). Minister Bakhtyar lauded the support given by the international community to mitigate the economic downturn in the wake of coronavirus breakout.
Among the international creditors, WB has allocated USD 240 million as initial support, which includes new funding and repurposing of existing funds. ADB has granted USD 2.5 million and repurposed USD 50 million, which are being used to tackle the pandemic. Additionally, ADB will provide USD 300 million as Emergency Assistance Lending (EAL) and USD 500 million under the Counter-Cyclical Support Facility within the ongoing financial year. Besides, USD 900 million from ADB are under discussion and might get allocated before the end of 2020.
The International Monetary Fund (IMF) has already disbursed USD 1.386 billion under Rapid Financing Instrument to Pakistan. Moreover, the EU has committed USD 12.545 million as financial support. The IDB has committed USD 500 million in oil financing and USD 150 million for combating the impact of COVID-19.
