5 days ago
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- Business Recorder
ADB approves $800m financing for Pakistan
ISLAMABAD: The Asian Development Bank (ADB) on Tuesday approved an $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan. The Improved Resource Mobilization and Utilization Reform Program, Subprogram 2, includes a policy-based loan of $300 million, and ADB's first ever policy-based guarantee of up to $500 million, which is expected to mobilise financing of up to $1 billion from commercial banks.
The ADB Board was originally convened to meet on May 28 to consider the loan request. However, the meeting was reportedly postponed at the request of the Indian executive director. The board meeting eventually convened on June 3 approved the $800 million package. Business Recorder texted ADB office in Islamabad in this regard, however, no response was received till filing of this report.
'Pakistan has made significant progress in improving macroeconomic conditions,' said ADB Country Director for Pakistan Emma Fan. 'This program backs the government's commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.'
ADB approves $800mn public finance program for Pakistan
The program supports far-reaching reforms to improve tax policy, administration, and compliance, while enhancing public expenditure and cash management. It also promotes digitalisation, investment facilitation, and private sector development. These measures aim to reduce Pakistan's fiscal deficit and public debt, while creating space for social and development spending. The program is underpinned by a comprehensive support package—including technical assistance and close coordination with development partners—designed to help Pakistan build long-term fiscal resilience and stability.
In a post on his X handle, Adviser to Finance Minister Khurram Schehzad said diplomacy led by Economic Affairs and Ministry of Finance secured majority support at the ADB Board.
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