The Asian Development Bank (ADB) has approved $800 million to help Pakistan fix its public finances through a mix of loans and guarantees. The deal includes a $300 million loan plus ADB’s first-ever policy guarantee of $500 million, which should pull in another $1 billion from commercial banks.
Pakistan has been working to get its economy back on track, and ADB Country Director Emma Fan says this program supports those efforts. “This program backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth,” Fan said.
The money will fund changes to Pakistan’s tax system, help the government spend money better, and push digital reforms that make it easier for businesses to invest. The goal is to shrink Pakistan’s budget gap and debt load while leaving room for spending on schools, health care, and development.
ADB is also providing technical help and working with other lenders to build Pakistan’s financial stability over time. Pakistan joined ADB when the bank started in 1966 and has received over $52 billion in various types of financing since then.
The program fits into ADB’s wider work supporting economic growth and infrastructure across Asia and the Pacific, where the bank has 69 member countries.
