Asian Development Bank approves $500 m loan to Pakistan

The Asian Development Bank has approved a $500 million loan for Pakistan on Tuesday. The loan will help Pakistan address the impact of high fuel and food prices on its people and the economy, the bank said. Addressing the impact of fuel and food price increases unleashes immediate benefits to Pakistan's people and to markets, according to the statement. High food and fuel prices have pushed Pakistan's inflation up to more than 25 percent, as the country struggles with a widening current account and fiscal deficits and falling foreign exchange reserves. On the other hand, World Bank has also assured Pakistan of providing US$500 million.