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)
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Updated 15 December 2022
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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. 


Pakistan says Indian minister initiated handshake in Dhaka, first contact since May conflict

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Pakistan says Indian minister initiated handshake in Dhaka, first contact since May conflict

  • Pakistan’s Ayaz Sadiq and India’s Subrahmanyam Jaishankar met on the sidelines of Khaleda Zia’s funeral
  • The National Assembly of Pakistan says Islamabad has consistently emphasized dialogue with New Delhi

ISLAMABAD: Pakistan said on Wednesday Indian External Affairs Minister Subrahmanyam Jaishankar initiated a brief handshake with Speaker of the National Assembly Sardar Ayaz Sadiq in Dhaka, marking the first high-level contact between the two nuclear-armed rivals since their military conflict in May.

The encounter took place on the sidelines of the funeral of former Bangladeshi prime minister Khaleda Zia, attended by senior officials and diplomats from multiple countries.

Ties between India and Pakistan have remained frozen since a four-day military confrontation in May, during which both sides exchanged missile, drone and air strikes before a ceasefire brokered by Washington.

“During Speaker NA Sardar Ayaz Sadiq’s visit to the Parliament of Bangladesh ... the Indian External Minister Dr. S. Jaishankar approached the Speaker National Assembly and [shook] hands,” Pakistan’s National Assembly said in a post on social media platform X.

It added that Jaishankar introduced himself to Sadiq during the brief interaction. India has not commented publicly on the exchange.

“It is noteworthy that Pakistan has consistently emphasized dialogue, restraint, and cooperative measures, including proposals for peace talks,” the post continued.

Tensions between the two neighbors escalated in April after a militant attack in Indian-administered Kashmir killed more than 20 tourists. New Delhi blamed Pakistan for supporting the attack, an allegation Islamabad denied, calling instead for an independent and transparent investigation.

Officials from both countries have largely avoided public interactions since the conflict, with senior figures refraining from handshakes or exchanges at international gatherings.

Sadiq was in Dhaka to attend Zia’s funeral and to convey condolences from Pakistan’s leadership and people. He also met Zia’s son Tarique Rahman, the acting chairman of the Bangladesh Nationalist Party, according to Pakistan’s high commission in Bangladesh.

Speaking to Pakistan’s Geo TV, Sadiq confirmed that Jaishankar approached him in full media glare and exchanged pleasantries.

Responding to a question about being photographed with the Indian minister, he said: “Cameras arrived with them. Our people took the photographs later.”