The Asian Development Bank (ADB) has approved a $300 million loan as budgetary support to Pakistan for the development of the capital market and promotion of private investment. This financial support is a part of ADB’s Third Capital Market Development Programme that builds on institutional and regulatory reforms. The concept of the Third Capital Market Development Programme (CMD) is cleared as a loan from the ADB for budgetary support to enable the government to finance Covid-19 related expenditure.
ADB Director General for Central and West Asia, Yevgeniy Zhukov has declared ADB as a leading development partner of Pakistan for several years in supporting the evolution of its capital markets.
The programme focuses to enhance institutional investor demand and promote the range of alternative financial instruments such as derivatives and commodity futures that are available to investors. It will robust the country’s capital market and strengthen government debt management and will help to mobilise more domestic resources. This development programme aims to support the government’s efforts to finance sustainable growth and respond effectively to crises. The ADB’s programme supports policy actions that will enhance the market stability and attract investor capital to Pakistan. The programme includes structural reforms that will regulate market surveillance systems to facilitate information exchange and the government debt market. It will mobilise financial resources for productive investment by the private sector that will facilitate economic growth and will stabilise systemic vulnerabilities in the bank-dominated finance system.
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