The Asian Development Bank (ADB) will extend loans worth $1.53 billion to the Pakistan government in reforming its energy sector and improving health and other civic facilities in its mountainous tribal province of Khyber Pakhtunkhwa.

Of the total amount, around $300 million would be used for energy sector reforms and financial sustainability programs; $600 million for the Integrated Social Protection Development Program (Ehsaas program), and $380 million for Khyber Pakhtunkhwa (KP) City Improvement Investment Project.

$15 million will be also given for phase II of the Khyber Pakhtunkhwa Cities Improvement Project. 

The two parties will also sign a loan agreement of $235 million for the Central Asia Economic Transport Corridor Development Program (Tranche 2).

The Pakistan authority and the ADB are expected to sign six agreements on the loans this week, reported The Express Tribune.

For Pakistan, which has been facing a huge current account deficit, the deal would also offer significant relief to the country’s foreign exchange reserves. Authorities are also negotiating the revival of the IMF's $6 billion loan package. 

Earlier Pakistan, staring at a major economic crisis, negotiated $250 million loans from the Islamic Development Bank (IDB) which has cleared two proposals for loans to be used for dam construction in Pakistan and vaccine procurements.

(SAM)