Pakistan signed an agreement with the Asian Development Bank for a loan worth USD 1.3 billion to support the cash-strapped country's public finances and shore up its slowing economy.

The bank has approved a USD 300 million policy-based loan that will help Pakistan to address financial sustainability, governance, and energy infrastructure policy constraints in country's energy sector.

Under the deal, the ADB will provide the loan to help stabilize the foreign exchange reserves of the country.

Under the agreement, USD 1 billion has been extended to Pakistan to improve its current account deficit and strengthen its revenue base.