Pak-Japan ink US $ 233 million soft loan agreement

Pakistan and Japan on Friday signed an agreement under which Japan would provide a soft loan of US $ 233 million for development projects in Pakistan.

The signing ceremony was held here at Economic Affairs Division. The Agreement was signed by Sibtain Fazal Halim, Secretary Economic Affairs Division and Chihiro Atsumi, Ambassador of the Japan in Pakistan on behalf of his country.

Under the arrangement, Japan will provide a soft loan of US $ 233 million of which US& 60 million and US $ 173 million would be for budgetary support Khyber Pakhtunkhwa Rural Road Project respectively.

This support is out of a total US $ 500 million pledged by Japan in the meeting of Pakistan Development Forum 2010.

Japan is providing these loans on highly concessional interest rate of 0.01 percent per anum and to be remitted over a period of 40 years including a grace period of 10 years.