$750m borrowed for pensions, PPP

The government has cleared plans to negotiate $750 million in loans with the Asian Development Bank, comprising $500 million for pension reforms and $250 million for a public-private partnership programme, The Express Tribune reported. The loans are equivalent to Rs209 billion, according to the report, and were approved by a committee led by Planning Commission Deputy Chairman Ahsan Iqbal.

Officials described the borrowing as budget support, while the stated programme aims include limiting pension liabilities and strengthening the framework for public-private infrastructure projects. Of the PPP loan, $200 million would be on relatively expensive terms, with the remainder offered at concessional rates. The report also noted that Pakistan’s public debt stood at Rs86.7 trillion in June and that additional interest costs could constrain social-sector spending.