The Asian Development Bank (ADB) on Wednesday approved a new five-year indicative lending programme of $10 billion aimed at supporting Pakistan’s efforts to deal with economic and social challenges thrown up by the pandemic and persistent structural weaknesses.

The Manila-based lender will provide these loans from 2021 through 2025, including the $6.3 billion that it plans to approve in the next three years. However, the actual approval and disbursement of these loans will depend on Pakistan’s ability to meet conditions and timely process loan documents. About one-fourth of the total loans will be concessionary at around 2% interest rate and remaining loans will cost Islamabad the London Interbank Offered Rate (Libor) plus 0.5%.

Out of the $6.3 billion that is planned to be disbursed in the next three years, about $4.6 billion is relatively expensive Libor-linked loan.

https://tribune.com.pk/story/2281608/adb-approves-10b-lending-plan