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Aftab Maken
ISLAMABAD: The Asian Development Bank (ADB) on Monday approved a comprehensive $800 million package aimed at strengthening fiscal sustainability and enhancing public financial management in the country, said an official release of the ADB.
The support comes under the Improved Resource Mobilization and Utilization Reform Program (Subprogram 2) and includes a $300 million policy-based loan along with ADB’s first-ever policy-based guarantee of up to $500 million. This guarantee is expected to mobilize up to $1 billion in additional financing from international commercial banks.
The program is designed to support Pakistan’s ongoing macroeconomic reforms and institutional restructuring efforts to build long-term fiscal resilience. ADB Country Director for Pakistan, Emma Fan, noted the significance of the initiative, saying, “Pakistan has made significant progress in improving macroeconomic conditions. This program backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.”
The reform-focused initiative aims to enhance tax policy, compliance, and administration, while streamlining public expenditure and cash management systems. A major emphasis is also placed on the digitalization of public finance, investment facilitation, and private sector development, all geared toward improving fiscal discipline, reducing the public debt burden, and creating fiscal space for social protection and development spending.
The ADB’s financing is part of a broader coordinated effort, which includes technical assistance and support from other development partners, to ensure robust implementation and monitoring of reforms.
As a founding member of the ADB, Pakistan has received more than $52 billion in loans, grants, and other financial instruments since 1966. These have helped the country improve infrastructure, energy and food security, transport connectivity, and social services—pillars essential for inclusive growth.
The ADB, with its regional footprint and development expertise, remains a key multilateral institution backing sustainable, resilient growth across Asia and the Pacific. Owned by 69 members—50 of which are from the region—the Bank continues to drive impact through innovative financing tools and strategic partnerships.
This latest program reflects the growing focus on sustainable fiscal management as a prerequisite for long-term economic stability and inclusive growth in Pakistan.
