ISLAMABAD – The Asian Development Bank has approved a $300 loan to boost private investment in Pakistan, and to mobilise domestic resources to finance sustainable growth.
The Philippines-based lender approved the loan under Third Capital Market Development Program to develop institutional and regulatory reforms. The program aimed to amplify institutional investor demand and increase the range of alternative financial instruments, including derivatives and commodity futures.
ADB’s Director General for Central and West Asia Yevgeniy Zhukov said, “For several years ADB has been Pakistan’s lead development partner in supporting the evolution of its capital markets.”
Zhukov said the new programme will help mobilize more domestic resources which support the government’s efforts to finance sustainable growth and respond effectively to crises and will help make the country’s capital markets more vigorous.
Pakistan’s finance sector increases the risk of the country not being able to withstand financial shocks and periods of uncertainty, it said.
Meanwhile, Minister for Economic Affairs Omar Ayub Khan commended $300 million loan by Asian Development Bank. Khan acknowledged the support of the Philippines-based lender.
Minister @OmarAyubKhan appreciated approval of $ 300 million by @ADB_HQ under Capital Market Development Program (SP-2). This program aims to support demand and supply measures to broaden and deepen the financial system in Pakistan with strong legal and regulatory framework. pic.twitter.com/NektyZF9wG
— Economic Affairs Division, Government of Pakistan (@eadgop) March 22, 2022
He said the programme will help to mobilize financial resources for productive investment, especially by the private sector, and facilitate economic growth by developing the bond and equity capital markets.
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