ADB approves $800 mln to support fiscal reforms in Pakistan
The Asian Development Bank (ADB) has approved a US$800 million financing programme to support Pakistan’s fiscal sustainability and strengthen its public financial management systems, the Associated Press of Pakistan (APP) reported on Tuesday, citing a press release issued by the ADB, WAM reports.
The initiative, titled the "Improved Resource Mobilisation and Utilisation Reform Programme – Subprogramme 2," includes a US$300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to US$500 million. The guarantee is expected to mobilise an estimated US$1 billion in additional financing 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,” she added.
The reforms supported under the programme aim to enhance tax policy and compliance, improve public expenditure management, and boost efficiency in cash handling. It also supports digital transformation, investment facilitation, and private sector development to reduce fiscal deficits and public debt while expanding fiscal space for social and developmental spending.
The initiative is supported by a comprehensive assistance package that includes technical aid and coordination with international development partners, designed to help Pakistan strengthen long-term fiscal resilience and macroeconomic stability.
Pakistan, a founding member of the ADB, has received over US$52 billion in assistance since 1966 in the form of loans, grants, and other financial instruments to support inclusive growth and infrastructure development in sectors such as energy, food security, transportation, and social services.
As reported previously, Kyrgyzstan will receive $38.8 million from ADB to improve water supply in Naryn.
