Japan to lend $170m to Pak flood rehab

ISLAMABAD: The Japan International Cooperation Agency will extend a loan of 14.7 billion yen ($170 million) to Pakistan for reconstruction work in the Khyber Pakhtunkhwa province.

An official development loan agreement was signed in Tokyo Tuesday.

The Japanese government arm in January had agreed to another loan of up to 5 billion yen, taking total ODA loans to 19.7 billion yen.

Both loans carry an interest rate of 0.01% and will have to be repaid in 40 years.

Pakistan last July was ravaged by the worst floods in its history which submerged one-fifth of the south Asian country and left millions homeless, damaging roads and infrastructure.