Latest news with #fiscalSustainability
Arab News
03-06-2025
- Business
- Arab News
ADB approves $800 million program to support Pakistan's public finance reforms
KARACHI: The Asian Development Bank (ADB) on Tuesday approved an $800 million financing package for Pakistan to help the country improve fiscal sustainability, strengthen public financial management and support economic reforms. The funding, part of the Improved Resource Mobilization and Utilization Reform Program (Subprogram 2), includes a $300 million policy-based loan and ADB's first-ever policy-based guarantee of up to $500 million, which is expected to help Pakistan raise as much as $1 billion from commercial banks. 'Pakistan has made significant progress in improving macroeconomic conditions,' ADB's Country Director for Pakistan, Emma Fan, said in a statement. 'This program backs the government's commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.' The program supports reforms to tax policy, administration and compliance, along with improvements in public expenditure management, cash handling and digitalization. It also aims to facilitate investment and private sector development, with the broader goal of reducing Pakistan's fiscal deficit and public debt while creating space for development and social spending. Khurram Schehzad, adviser to Pakistan's finance minister, also confirmed the development in a social media post, saying 'diplomacy' led by the finance ministry and economic affairs division had helped secure majority support at ADB Board. The ADB said the program is backed by a comprehensive support package involving technical assistance and coordination with development partners to help Pakistan build long-term fiscal resilience. A founding member of ADB, Pakistan has received more than $52 billion in public and private sector financing from the bank since 1966, spanning infrastructure, energy, transport, food security and social services. ADB plays a leading role in supporting inclusive and sustainable development across Asia and the Pacific.
Bloomberg
20-05-2025
- Business
- Bloomberg
Long End of the Curve Is Where Risk Comes In: Misra
00:00 How much risk is in the so-called risk free asset? So depends on what you define by risk. Credit risk. There is no credit risk. I mean, the US issues fiat currency, we we will pay back our debt, the duration risk which is really a function of term premium or I don't want to bond geek out here, but risk premium that's much higher. So you're looking out the curve. There's a lot of risk in most any of her diamonds you look in Japan. So I think if there's a global rise in rates, if we're ignoring I mean, I think the whole Moody's downgrade, we knew about it. It was lagging. I hear you. But, you know, in the words of Hemingway, you know, how do you go bankrupt? And not that I'm saying that the US is going bankrupt, but, you know, it's gradually and then suddenly and I think, are we at that point where the market sees, you know, what we have to look out for fiscal sustainability, Congress is is not doing its bit. So the bond market has to force Congress to do its bit. And so I think that's why the long end is scary because how high do rates have to go before the administration or Congress says, you know what, We don't have the political will, but the market's forcing our hand. I'm not sure what that level is. I don't think the bond market is really beautiful right now. It's in the deep state. So, you know, that's why I think when you ask about risk, the long end has just the front end is being dragged with the long. And that's where I think there's opportunity because I think I mean, we're trying to move away from trade, but we're still in that because effective tariff rate is still high. There's uncertainty. I think the Fed will be late, but at some point they're going to get a lot more aggressively when they start. So the front end, I like the long and that's where that risk comes in.
