ADB to lend Pakistan $1.5b to cope with floods

Funds will be used for enhancing social and food security
<p>A view of rotten apples swept away by floods lying on the riverside in Balochistan. Photo: Twitter</p>

A view of rotten apples swept away by floods lying on the riverside in Balochistan. Photo: Twitter

The Asian Development Bank (ADB) has promised to lend $1.5 billion to Pakistan to deal with the climate-induced catastrophe as well as other significant projects.

According to a document shared by the Manila-based bank, the money will be spent on ensuring social security, food security, and business support.

Of the total loan, an amount roughly equal to Rs330 billion will be provided in the form of budget support to the Pakistan government.

The bank will charge a 2-3% interest rate on commercial loans, a high-interest rate even according to ADB standards.

Of the total loan, $1.25 billion will be payable to the lender in seven years and another $250 million for a period of 25 years.

The ADB has noted that 3.2 million people have been affected by the mega deluge that submerged one-third of the country.

Floods 2022

ADB

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