The Asian Development Bank has expanded its partnerships with Pakistan and Indonesia in separate moves to help deepen regional trade ties.
The ADB announced that two more banks in Pakistan have signed on to the its Trade Finance Program, an initiative that supports trade transactions in developing countries by providing financing and guarantees through local banks.
There are now 13 Pakistani banks participating in the program, which last year was able to support $2.7 billion in trade in emerging Asia. Pakistan’s share of the total sum was the largest among ADB’s developing member countries at $832.6 million, according to a news release from the bank.
The ADB also announced that it is investing $200 million in Indonesia’s official export credit agency to help boost access to trade finance and support energy efficiency improvements in the country’s export industries.
This investment would allow Indonesia Eximbank to provide US dollar-based financing and working capital to Indonesian exporters, who are largely constrained by the lack of foreign currency financing, according to an ADB news release. Meanwhile, $30 million of the total investment will be used for a new financing mechanism that will support efforts to promote energy efficiency among Indonesian export companies.
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