The Central Development Working Party – the country’s project sanctioning authority –on Wednesday gave a go-ahead to the concept clearance proposal for the $1.5 billion loan under the BRACE programme (Building Resilience with Active Countercyclical Expenditures). ADB will provide a $1.25 billion loan out of its ordinary capital resource at an interest rate of Secured Overnight Financing Rate (SOFR) plus 0.75%, plus a surcharge. The $1.25 billion is being secured for seven years, which is also 18 years shorter than the standard loan tenure of ADB. The Planning Commission has objected to taking the $1.25 billion loan at a higher rate. One of the reasons behind the delay is said to be a coordinated move between the ADB and the World Bank for budget support lending to Pakistan.

Source: The Express Tribune September 15, 2022 22:47 UTC