The agreement signed by Pakistan, says economy minister in Islamabad.

Axar.az reports citing AA that the Asian Development Bank (ADB) on Monday has signed an agreement with Pakistan for a loan worth $1.3 billion, the country's economy minister said.

Under the agreement, the bank will provide the loan to help stabilize the foreign exchange reserves of the country, Hammad Azhar tweeted after the signing ceremony.

"Economic Affairs Division and ADB have signed policy-based loans of USD 1.3 Bn today. The sums will be disbursed today and will help bolster reserves and strengthen our economic outlook," Azhar said.

On Friday, the bank said in a statement that the bank has approved a $300 million policy-based loan that will help Pakistan to address financial sustainability, governance, and energy infrastructure policy constraints in the country's energy sector.

The ADB will finance the program with support from its development partners. The Export-Import Bank of Korea has confirmed it will provide $80 million in co-financing for the first subprogram.