The Asian Development Bank (ADB) has approved an $800 million financing package to support Pakistan’s fiscal sustainability and strengthen public financial management, according to a release cited by the Associated Press of Pakistan.
The package comprises a $300 million policy-based loan and a $500 million policy-based guarantee, marking the ADB’s first use of this guarantee structure. The guarantee is expected to mobilise up to $1 billion in commercial financing.
The initiative, known as the “Improved Resource Mobilisation and Utilisation Reform Programme – Subprogramme 2,” is designed to support institutional and policy reforms aimed at improving tax compliance, public expenditure management, and cash handling. It also backs efforts in digital transformation and private sector development.
ADB Country Director for Pakistan, Emma Fan, said the programme aligns with Pakistan’s reform agenda to strengthen fiscal governance and expand budgetary space for development and social spending.
The package is supported by technical assistance and coordinated inputs from international development partners. It is aimed at improving Pakistan’s long-term fiscal resilience amid rising debt and external financing pressures.
Pakistan has received more than $52 billion in assistance from the ADB since joining the institution in 1966. The funding has been directed toward infrastructure, energy, food security, and social development.
