Asian Development Bank Approves $800 Million Program to Strengthen Pakistan’s Public Finances

The Asian Development Bank (ADB) has approved an $800 million program aimed at strengthening fiscal sustainability and improving public financial management in Pakistan. This new initiative, named the Improved Resource Mobilization and Utilization Reform Program, Subprogram 2, consists of a $300 million policy-based loan and ADB's inaugural policy-based guarantee of up to $500 million, which is expected to incentivize up to $1 billion in additional financing from commercial banks. ADB's efforts will support Pakistan's financial reforms to enhance tax policy, administration, compliance, and to improve public expenditure and cash management. The initiative also aims to promote digitalization, investment facilitation, and private sector development. It is underpinned by technical assistance and collaborative efforts with development partners to build Pakistan's long-term fiscal resilience. Highlighting Pakistan's founding member status of ADB, the bank has committed over $52 billion to Pakistani growth initiatives since 1966.