ADB expands Pakistan trade finance after floods

The Asian Development Bank (ADB) is widening its trade finance programme in Pakistan by $500 million to help the country with recovery and reconstruction after floods which caused billions of dollars in damage.

That means the bank could provide up to $2 billion in trade finance, ADB said in a statement.

“The widespread flooding has exacted a heavy toll on the people of Pakistan. They will need medicines and foodstuffs straight away and, later on, capital equipment to get the economy humming again,” ADB President Haruhiko Kuroda said in a statement.

“The expansion of the Trade Finance Program in Pakistan will help ensure there are no financial bottlenecks when companies approach their banks to help import what they need to help Pakistan recover and rebuild.”

Washington wants economic and political stability in Pakistan, which it sees as a vital ally in its war on militancy.

The floods, triggered by heavy monsoon rains in late July, forced at least 10 million people from their homes and caused up to $43 billion in damage.