Latest news with #ResourceMobilisationReformProgramme
The Hindu
3 days ago
- Business
- The Hindu
India 'vehemently opposed' ADB's latest funding to Pakistan
In continuation of its efforts in various multinational fora to curb funding to Pakistan, the Indian government 'vehemently opposed' the Asian Development Bank's latest decision to provide additional funding to Pakistan, saying that that country's increased military spending cannot fully be explained through domestic resource mobilisation, according to government sources. In addition, India has told the ADB that it expects the multilateral bank's management to 'adequately ring-fence the ADB financing, to prevent any such misuse'. On Tuesday (June 3, 2025), the ADB announced that it had approved funding of $800 million to Pakistan under its Resource Mobilisation Reform Programme. 'India cautioned the ADB regarding the possibility of misuse of its resources,' according to government sources. 'The linkage between Pakistan's increase in expenditure on its military, as opposed to on development, cannot be fully explained solely in terms of its domestic resource mobilisation.' The source further said that India pointed out to the ADB that Pakistan's tax collection as a percentage of its GDP fell from 13% in 2017-18 to 9.2% in 2022-23 and continues to remain way lower than the Asia and Pacific average of about 19.0%. However, India highlighted that there has been 'a significant increase' in Pakistan's defense spending during the same period. The Hindu has previously reported on how Finance Minister Nirmala Sitharaman had lobbied strongly with the International Monetary Fund and its members, too, to stop additional funding to Pakistan, and how India would be sending a dossier to the Financial Action Task Force (FATF) to re-include Pakistan on the 'grey list' of countries that warranted greater supervision. India expressed strong reservations about Pakistan's existing governance system to the ADB, the source added. 'The progress on implementation of the most critical FATF action items relating to terrorist financing investigations and prosecution of leaders of UN-designated terrorist groups and freezing and confiscation of criminal assets is highly unsatisfactory,' the source said.
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Business Standard
3 days ago
- Business
- Business Standard
Asian Development Bank approves $800 million package for Pakistan
The Asian Development Bank (ADB) approved USD 800 million for Pakistan to strengthen fiscal sustainability and improve public financial management, an official said on Tuesday. Khurram Schehzad, advisor to the finance minister confirmed the development 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). He said, ADB approves USD 800 million financing package for Pakistan under the Resource Mobilisation Reform Programme. Separately, the Philippines-based lender also confirmed the development in a statement, saying that subprogramme 2 of the Improved Resource Mobilisation and Utilisation Reform Programme includes a policy-based loan of USD 300 million, and ADB's first-ever policy-based guarantee of up to USD 500 million, which is expected to mobilise financing of up to USD 1 billion from commercial banks. Pakistan has made significant progress in improving macroeconomic conditions, said ADB country director for Pakistan, Emma Fan. This programme 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, it said. Quoting ministry officials, The Express Tribune newspaper reported that it aims to enhance domestic resource mobilisation and stabilise the economy through financial reforms. The support will help improve the tax system, increase revenues, and promote fiscal discipline. The programme is also expected to broaden the country's revenue base and marks a key step toward economic self-reliance.
