Latest news with #ImprovedResourceMobilisationandUtilisationReformProgram

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.