ISLAMABAD: Pakistan is to obtain a loan of one billion dollars from the Asian Development Bank (ADB) to improve its capacity to deal with environmental challenges and natural disasters.
According to documents, around Rs280 billion under the loan will be spent on climate disaster management, including flood protection, agricultural development, food security and rural development projects.
The ADB will also provide Pakistan with a technical grant of one million dollars.
The document said that investment in environmental protection in Pakistan remains insufficient, while the country faces an annual financing gap of between 30 and 60 billion dollars.
The loan carries a tenure of 15 years, including a grace period of three years. The average repayment period is approximately 12 years, while the interest rate will be set in accordance with the ADB’s flexible lending programme. A charge of 0.15 per cent per annum will apply on unutilised amounts.
