The Asian Development Bank has decided to increase the trade finance by about $500 million. With this increase the trade cycle will reach to the level of $1.5 billion to $2 billion, which will help the country in expediting its reconstruction efforts. The above announcement was made by the President of ADB in an official meeting on flood emergency in Pakistan. The Trade finance provides loans and guarantees in collaboration with ADB member countries for increasing the trade transactions in the developing countries.
In Year 2009 about $980 million of trade business was generated by the exposure of $249 million dollars. With the help of private sector financing and rollover effect of short term financing the additional funding will prove more effective.