The Asian Development Bank (ADB) has approved a $ 500 million loan to help the government provide social protection programs for the poor and vulnerable, expanding health care and creating an arm-friendly tax incentive to boost growth and jobs while the country fights the new Coronavirus pandemic (COVID-19).
"The pandemic of COVID-19 has hit Pakistan at a critical point in the ongoing stimulus package," said ADB President Masatsugu Asakawa.
We are determined to support Pakistan in this difficult time. This loan will help fill selected financing gaps in the implementation of its countercyclical development plan, including strengthening the country's social security and health care system.
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COVID-19 is expected to result in a strong growth slowdown, income collection and significant job losses in Pakistan.
The country's health response is hampered by a small number of health workers compared to the population and insufficient availability of hospital beds.
The ADB Active Response and Expenditure Program (COVID-19) will support several government initiatives, including cash payments to 3 million workers today, of which approximately. 23% are women and donate 7.5 million families under the social protection of the Kifalat program.
The program will also contribute to the purchase of additional fans and COVID-19 protective kits for medical personnel, including appropriate personal protective equipment for women. To prevent job losses, the loan will support young entrepreneurs, including at least 25% women, through the state-led youth entrepreneurship program, Kamyab Jawan.
ADB's CARES program will provide $ 500 million in parallel funding from the Asian Infrastructure Investment Bank and another $ 500 million from the World Bank's Human Resource Development Development (SHIFT) program.
The CARES program has been developed in close collaboration with these development partners, the International Monetary Fund and other bilateral donors.
The loan will be financed through the COVID-19 Pandemic Control Option (CPRO) under ADB's Countercyclical Assistance Facility. The CPRO was launched as part of ADB's comprehensive $ 20 billion COVID response to developing countries' development assistance announced on April 13.
The CARES program is part of ADB's Integrated Support Package to support the immediate efforts of the Pakistani government to mitigate the significant adverse health, social and economic impacts of the COVID-19 pandemic. On May 19, ADB approved a $ 300 million emergency aid to support Pakistan's response to the public health pandemic and meet the basic needs of vulnerable and impoverished populations.
In March, ADB approved $ 2.5 million in scholarships to help Pakistan purchase personal protective equipment and other medical supplies.
On April 9, ADB rescheduled $ 30 million from the National Disaster Risk Management Fund (NDRMF) project, and the NDRMF Board of Directors provided another $ 20 million to purchase medical equipment to strengthen hospitals and other medical facilities in Pakistan.
