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ADB Approves $800m Programme to Boost Pakistan's Fiscal Sustainability
The ADB has approved an $800M programme to improve fiscal sustainability, including its first-ever $500M policy-based guarantee to unlock $1B in financing from global banks.
ND
by News Desk
2025-06-03
ADB Approves $800m Programme to Boost Pakistan's Fiscal Sustainability

The Asian Development Bank (ADB) has approved a major $800 million programme aimed at bolstering fiscal sustainability and strengthening public financial management in Pakistan, according to an official statement released by the Philippines-based lender on Tuesday.

The initiative — Subprogramme 2 of the "Improved Resource Mobilisation and Utilisation Reform Programme" — includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million, which is expected to unlock up to $1 billion in commercial bank financing.

📊 Key Objectives of the Programme:

·       Strengthen tax policy, administration, and compliance

·       Improve public expenditure and cash management

·       Promote digitalisation and private sector development

·       Facilitate investment and institutional reforms

·       Create fiscal space for social and development spending

🗣️ ADB Country Director for Pakistan, Emma Fan, stated:

“Pakistan has made significant progress in improving macroeconomic conditions. This programme backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.”

The ADB highlighted that the programme is backed by a comprehensive support package, which includes technical assistance and collaboration with development partners, aimed at helping Pakistan build long-term fiscal resilience.

The programme is part of ADB’s broader efforts to support Pakistan amid ongoing economic challenges and rising fiscal pressure.

🧾 Government Response:

Khurram Schehzad, adviser to the finance minister, confirmed the development:

“Diplomacy led by Economic Affairs & Ministry of Finance secures majority support at ADB Board.”

This programme arrives at a time when Pakistan is pursuing deeper engagement with multilateral lenders and restructuring reforms to attract foreign investment and reduce its fiscal deficit and public debt burden.

 
Tagged:

ADB

PakistanEconomy

EconomicRecovery

FiscalReforms
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