ISLAMABAD: The Asian Development Bank (ADB) has approved a $300 million policy-based loan to promote Pakistan’s macroeconomic stability by facilitating improved trade competitiveness and export diversification.
“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,” said ADB Principal Public Management Specialist Hiranya Mukhopadhyay in a statement said.
Hiranya further said, “ADB’s program will support these efforts and help Pakistan to improve its export competitiveness—now more important than ever given the impacts of the pandemic.”
The statement added that ADB’s program will help Pakistan recover its current account deficit in a sustained manner and continue to facilitate export diversification.
“It will introduce important tariff- and tax-related policy reforms to help improve Pakistan’s international competitiveness and further strengthen key institutions, including accreditation bodies, the Export-Import Bank of Pakistan, and the Pakistan Single Window,” it added.
Referring to the program, the ADB informed that Pakistan’s new financing falls under Subprogram 2 of the Trade and Competitiveness Program. “Under the first phase, ADB helped the government usher in key reforms, including reducing or abolishing tariffs and ad hoc duties on a large number of raw materials and intermediate goods,” it added.
The statement also said, “Several steps were also taken to introduce e-commerce, strengthen key institutions involved in facilitating trade, and enhance the export certification process.”
