Latest news with #EmmaFan
Business Recorder
6 days ago
- Business
- Business Recorder
Pakistan, ADB sign $300m ‘Subprogram II' loan
ISLAMABAD: The government of Pakistan and Asian Development Bank (ADB) on Wednesday signed a $300 million loan agreement for the 'Improved Resource Mobilization and Utilization Reform Programme (Subprogramme-II)'. Dr Kazim Niaz, secretary of the Economic Affairs Division, and Emma Fan, country director Pakistan Resident Mission, ADB signed the loan agreement. The ceremony was attended by senior officials from the government of Pakistan and ADB. The signing of the agreement underscores Pakistan's commitment to prioritise macroeconomic stabilisation and fiscal consolidation through enhanced domestic resource mobilisation, the division said. ADB approves $800m financing for Pakistan This programme is designed in a programmatic mode and aims to introduce structural reforms in trade, revenue generation and capital market development. A Policy Based Guarantee (PBG) of $500 million is also associated with this policy-based loan (PBL), backed by a sovereign counter-guarantee and indemnity to raise commercial financing of $1 billion. The total financing package of $800 million will significantly contribute to Pakistan's ongoing macroeconomic recovery and stabilisation efforts. Copyright Business Recorder, 2025
New Indian Express
6 days ago
- Business
- New Indian Express
ADB approves $800 million to Pak despite opposition from India
The Indian government has vehemently opposed the Asian Development Bank's (ADB's) $800 million loan to Pakistan. According to government sources, India shared deep concerns regarding the potential misuse of ADB resources, particularly in light of Pakistan's increasing defence expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms. India, according to government sources, told ADB that the economic fragility of Pakistan also poses credit risks to the multilateral agency. The ADB on Wednesday approved an $800 million package to strengthen fiscal sustainability and improve public financial management in Pakistan. The package includes a policy-based loan of $300 million, and ADB's first ever policy-based guarantee of up to $500 million, which, according to a statement by ADB, is expected to mobilise financing of up to $1 billion from commercial banks. According to an ADB statement, the program supports far-reaching reforms to improve tax policy, administration, and compliance, while enhancing public expenditure and cash management. It also promotes digitalization, investment facilitation, and private sector development. While approving the loan, ADB said that Pakistan has made significant progress in improving macroeconomic conditions. 'This program backs the government's commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth,' ADB Country Director for Pakistan Emma Fan said in a statement.
United News of India
6 days ago
- Business
- United News of India
Asian Development Bank approves $800 million fund for Pakistan
Islamabad, June 4 (UNI) The Asian Development Bank (ADB) has approved an $800 million development fund for Pakistan, to improve fiscal sustainability and financial management in the economically deficit state. The amount will be distributed via the ADB's Improved Resource Mobilisation and Utilisation Reform Program, Subprogram 2. Comprising of a two-step policy-based loan, the first instalment will be of $300 million, followed by a second instalment of $500 million. 'Pakistan has made significant progress in improving macroeconomic conditions,' said ADB Country Director for Pakistan Emma Fan. The programme aims to support far-reaching reforms to improve tax policy, administration, and compliance, while enhancing public expenditure and cash management. Additionally, it also promotes digitalisation, investment facilitation, and private sector development. Notably, Pakistan had secured a $7 billion bailout programme from the IMF last year, and a new $1.4 billion arrangement in May under a climate resilience fund. The ADB loan comes as Pakistan is battling increased spending and generating little revenue, mounting debt, and next to no domestic or foreign investment due to security issues, as well as socio-political instability, leaving its already debilitated exchequer hanging by a thread. Islamabad's recent misadventure with India has further made all potential investors wary. All these funding measures aim to reduce Pakistan's fiscal deficit and public debt, while creating space for social and development spending. So far, multiple initiatives have been taken by several global bodies such as the International Monetary Fund, World Bank, and the Islamic Development Bank, to shore up Pakistan economically, but have been met with very little success. While Pakistan's economy for the time-being has stabilised, its ongoing problems with corruption, import-export deficit, foreign debt, terrorism, and social instability, have left its economic future bleak and uncertain.
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Business Standard
6 days ago
- Business
- Business Standard
India opposes ADB's $800 million aid to Pakistan, flags misuse concerns
India has vehemently opposed the Asian Development Bank's (ADB) financial assistance of $800 million to Pakistan, raising concerns about the potential misuse of ADB resources, sources said. India abstained from voting on the package at a recent Board meeting of the ADB. Indian officials cautioned the ADB on Pakistan's rising defence expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms. The ADB on Tuesday approved an $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan. 'Pakistan has made significant progress in improving macroeconomic conditions,' said ADB country director for Pakistan, Emma Fan. India, however, said that had the previous programmes, funded both by the ADB and the International Monetary Fund (IMF), succeeded in putting in place a sound macroeconomic policy environment, Pakistan would not have approached the IMF for the 24th bailout programme. India, sources said, highlighted that such a track record calls into question the effectiveness of programme design, monitoring, and implementation by the authorities. Tensions between India and Pakistan flared up following the Pahalgam terror attack of April 22, in which 26 civilians were killed, culminating in the launch of 'Operation Sindoor'. Highlighting that Pakistan's policy on cross-border terrorism has worsened the security situation in the region, India, sources said, flagged concerns about the country's 'highly unsatisfactory' progress in implementing the most critical Financial Action Task Force (FATF) action items. These relate to terrorist financing investigations, prosecution of leaders of UN-designated terrorist groups, and freezing and confiscation of criminal assets, India said. In May, India abstained from voting at the IMF meeting to review the $1 billion lending programme for Pakistan, raising concerns over the misuse of debt financing for state-sponsored cross-border terrorism. Sources said India expects the ADB to closely monitor implementation of the policy matrix to achieve the intended outcomes, since policy reforms in Pakistan have largely been driven by external support over the past several years, including from international financial institutions (IFIs) such as the ADB. Relying heavily on such support, India has said, undermines local ownership and creates a cycle of dependency. At the ADB Board meeting, India highlighted that while Pakistan's tax collection as a share of GDP declined from 13 per cent in FY18 to 9.2 per cent in FY23, there has been a significant increase in defence spending over the same period. 'This points to the possibility of diversion of funds made available to the country by external agencies, including IFIs, especially those that are made available by fungible debt financing through instruments such as policy-based loans, for increased defence spending,' India stressed, according to sources. India urged the ADB management to adequately ring-fence its financing to prevent any such misuse, sources said. India's representatives at the Board meeting also pointed to Pakistan's poor track record of implementation, stemming from the military's deeply entrenched interference in economic affairs. This, they said, poses risks of policy slippages and reform reversals, as witnessed in the past. India expressed strong reservations about Pakistan's existing governance system, which it said poses a continuing severe threat to regional peace and security. Finance Minister Nirmala Sitharaman met ADB president Masatsugu Asakawa and sought enhanced support for integrated rural prosperity initiatives, including job creation, last week. Asakawa met Prime Minister Narendra Modi on June 1, extending support to India's ambition of a 'Viksit Bharat' by 2047.
New Indian Express
6 days ago
- Business
- New Indian Express
ADB approves USD 800 million package for Pakistan, despite concerns raised by India: Reports
The Asian Development Bank (ADB) has approved a significant financial package for Pakistan, comprising a USD 300 million policy-based loan (PBL) and a USD 500 million program-based guarantee (PBG). This despite concerns expressed by India, reports said. The development comes a month after Pakistan secured a $1 billion (around Rs 8,500 crore) package from the International Monetary Fund (IMF). Khurram Schehzad, advisor to the finance minister confirmed the development relating to the ADB package in a brief statement on social media, saying that the package includes a USD 300 million policy-based loan (PBL) and a USD 500 million programme-based guarantee (PBG). The ADB package aims at bolstering Pakistan's fiscal sustainability and enhance public financial management through comprehensive reforms. The PTI quoted ADB country director for Pakistan, Emma Fan as saying that Pakistan has made significant progress in improving macroeconomic conditions. This programme, according to the news agency, backs the government's commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth. The programme 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. Meanwhile, the Moneycontrol quoting sources said that 'India shared deep concerns regarding the potential misuse of ADB resources, particularly in light of Pakistan's increasing defence expenditure, its declining tax-to-GDP ratio, and the lack of demonstrable progress on key macroeconomic reforms.' (With inputs from PTI)
