Pakistan signs $475 million flood loan deal with Asian Development Bank

A man (L) along with a youth use a satellite dish to move children across a flooded area after heavy monsoon rainfalls in Jaffarabad district, Balochistan province, on August 26, 2022. (AFP)
Short Url
Updated 15 December 2022
Follow

Pakistan signs $475 million flood loan deal with Asian Development Bank

  • Climate-induced floods submerged a third of Pakistan this year, caused $30 billion losses
  • Economic affairs minister Ayaz Sadiq says the concessionary loan was signed at a rate of 1 percent 

ISLAMABAD: Pakistan has signed a $475 million loan agreement for flood relief with the Asian Development Bank (ADB), the country’s economic affairs minister said on Thursday, taking the total for the year to $2.7 billion with the agency. 

Floods caused by abnormal monsoon rains and a melting glacier submerged huge swathes of the country earlier this year and killed nearly 1,700 people, the majority of them children and women. 

Minister Ayaz Sadiq said the concessionary ADB loan was signed at the rate of 1 percent for a period of 40 years. 

“The impression that’s being spread is that God forbid, Pakistan is going to be bankrupt, or it is in financial crisis. There is nothing like that,” Sadiq said in a recorded message. 

“Had there been such a situation, the ADB wouldn’t have signed these loans with us today.” 

Pakistan is struggling to meet its external financing obligations in the face of low foreign exchange reserves that are barely enough to cover a month of imports. It is also beset by decades-high inflation. 

The country has been trying to approach allies to seek financial support, and a ninth review of the International Monetary Fund for a 2019 bailout program has been pending since September. 


Sindh chief minister pledges compensation within two months after Karachi plaza fire

Updated 06 February 2026
Follow

Sindh chief minister pledges compensation within two months after Karachi plaza fire

  • Murad Ali Shah says government is working with Karachi chamber to help shopkeepers restart businesses
  • January fire that killed at least 67 brought safety of Karachi’s commercial buildings under sharp focus

KARACHI: Sindh Chief Minister Murad Ali Shah said on Friday compensation for shopkeepers affected by last month’s deadly Gul Plaza shopping mall blaze would be released within two months amid calls for improved fire safety regulations to protect commercial buildings in Karachi.

The fire at Gul Plaza in January killed at least 67 people and left more than 15 missing, triggering renewed criticism of lax enforcement of building codes and emergency preparedness in Pakistan’s largest city.

Authorities said the blaze spread rapidly through the multi-story commercial complex, complicating rescue efforts and raising questions about wiring, access routes and fire safety systems in older markets.

“The government in collaboration with the Karachi Chamber is actively working to help shopkeepers restart their businesses and aims to ensure that compensation is provided within two months so that the shopkeepers can buy inventories to restart their businesses,” the chief minister said while addressing the inauguration of the My Karachi Exhibition, an annual trade and consumer exhibition, according to an official statement.

He said temporary locations had been identified where shopkeepers could operate rent-free until reconstruction is completed, paying only basic maintenance costs.

Shah reiterated the Sindh administration’s commitment to provide Rs 10 million ($36,000) to the families of those who died in the fire, along with immediate relief of Rs 500,000 ($1,785) for affected shopkeepers.

He said Gul Plaza would be rebuilt within two years “in the same manner and with the same number of shops,” adding that the new structure would be safer and constructed “without a single square inch extra.”

Business leaders at the event called for stricter enforcement of fire safety standards across Karachi’s commercial districts, citing unregulated electrical wiring and poor compliance as recurring causes of deadly market fires.