ADB approves $800 million financing package for Pakistan

The Asian Development Bank (ADB) approved an $800 million program to strengthen fiscal sustainability and improve public financial management in Pakistan on Tuesday.

According to the statement released by the ADB, under the Improved Resource Mobilization and Utilization Reform Program, Subprogram 2, ADB has approved a policy-based loan of $300 million. Additionally, ADB has introduced its first-ever policy-based guarantee of up to $500 million, which is expected to mobilize up to $1 billion in financing from commercial banks.

“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.”

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 ADB. Since 1966, ADB has committed more than $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth and improve the country’s infrastructure, energy and food security, transport networks, and social services.