1.5 Billion Funding for Pakistan Hit by Floods

In the midst of devastating floods, this assistance will provide social protection, promote food security and support employment for the Pakistani people.

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Over 33 million people have been affected by the recent heavy monsoon rains, which have also caused extensive damage to infrastructure and agriculture. Pakistan was already facing a severe financial crisis before the impact of the rains in mid-June.

According to an ADB statement, the loan "will help finance the government's $2.3 billion countercyclical development spending program designed to cushion the impacts of external shocks."

The country's countercyclical development spending package targets the poorest families "who are often disproportionately affected in times of crisis." 

Such assistance, "provided under ADB's Building Resilience with Active Countercyclical Expenditures (BRACE) program" is part of "a major response package to support Pakistan's people, livelihoods and infrastructure in the wake of the recent floods."

It will increase the number of families receiving cash transfers from 7.9 million to 9 million. At the same time, it will help increase the number of children enrolled in primary and secondary schools and improve the geographic coverage of health services and nutritional supplies.

ADB's Director of Public Management, Financial Sector and Trade, Tariq Niazi, said that close work is being done with the IMF so that "our support through policy dialogue, technical assistance and program lending is well coordinated and that we can ultimately help the government improve Pakistan's resilience to shocks."