ADB's board approves $800m for Pakistan

June 03, 2025 (MLN): The Asian Development Bank (ADB) has approved an $800 million financing package for Pakistan under the Resource Mobilization Reform Program (Subprogram-II).

This package includes a $300m Policy-Based Loan (PBL) and ADB’s first-ever Policy-Based Guarantee (PBG) of up to $500m, which is expected to mobilize up to $1 billion in financing from commercial banks, according to a tweet by Khurram Schehzad, Advisor to the finance minister, on X.

Diplomacy led by the Economic Affairs Division and the Ministry of Finance secured majority support at the ADB Board.

“Pakistan has made significant progress in improving macroeconomic conditions,” said ADB Country Director for Pakistan, Emma Fan.

“This program backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth”, Emma Fan added.

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.

These measures aim to reduce Pakistan’s fiscal deficit and public debt, while creating space for social and development spending.

The program is underpinned by a comprehensive support package—including technical assistance and close coordination with development partners—designed to help Pakistan build long-term fiscal resilience and stability.

Pakistan is a founding member of the Asian Development Bank (ADB).

Since 1966, ADB has committed more than $52bn in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth.

This support has also helped improve the country’s infrastructure, energy and food security, transport networks, and social services.

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