ADB to provide $300m for macro economic stability
The Asian Development Bank (ADB) has approved a $300 million policy-based loan to help promote macroeconomic stability in Pakistan 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 Hiranya Mukhopadhyay in a statement issued on Friday.
"ADB's program will support these efforts and help Pakistan to improve its export competitivenessnow more important than ever given the impacts of the pandemic."
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.
The 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.
Several steps were also taken to introduce e-commerce, strengthen key institutions involved in facilitating trade, and enhance the export certification process.
Since fiscal year 2004, Pakistan has registered a rise-and-fall pattern of export growth reflecting underperformance in its export industry and longterm decline in export competitiveness. This is compounded by lost export growth momentum from COVID-19, which has reduced high-income countries' demand for manufacturing goods and disrupted the supply of raw materials.
ADB is coordinating its efforts with other development partners and donors while the program complements International Monetary Fund-led reform initiatives by helping to improve competitiveness, which will help build robust foreign exchange reserves.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.
Meanwhile, the University of Veterinary and Animal Sciences (UVAS) and Dalum Academy of Agricultural Business Denmark (DAAB) signed a memorandum of understanding (MoU) to develop cooperation in the fields of livestock development, management, breed improvement, nutrition, extension and support services.
According to a spokesperson here on Friday, Vice-Chancellor Prof Dr Nasim Ahmad and Head of International Division DAAB Mr Carsten Friis Poulsen signed the MoU in the virtual MoU-signing ceremony held at the UVAS City Campus.
This initiative was arranged by Ambassador of Pakistan in Denmark Mr Ahmad Farooq. A number of participants including Secretary Livestock & Dairy Development (L&DD) Department Punjab Capt (Retd) Saqib Zafar, Dean Faculty of Biosciences Prof Dr Habib-ur-Rehman, officials from Livestock Department and International Relation Officer ( DAAB) Mr Neil Erik Jespersen joined through video link.