The Asian Development Bank (ADB) has approved an $800 million initiative aimed at enhancing Pakistan’s fiscal sustainability and strengthening its public financial management systems.
Dubbed the Improved Resource Mobilization and Utilization Reform Program (Subprogram 2), the package includes a $300 million policy-based loan and ADB’s first policy-based guarantee of up to $500 million, which is expected to attract an additional $1 billion in financing from commercial banks.
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Emma Fan, ADB’s Country Director for Pakistan, noted, “Pakistan has made strides in stabilizing its economy. This program supports the government’s reform agenda to solidify public finances and support sustainable growth.”
The initiative focuses on comprehensive reforms to improve tax collection, public spending efficiency, and digital governance, while also fostering private sector growth and investment. These measures aim to curb fiscal deficits and reduce debt, allowing more room for social and development programs.
Supported by technical assistance and collaboration with other global partners, the program is designed to build Pakistan’s long-term financial resilience.
A founding member of ADB, Pakistan has received over $52 billion in funding since 1966 to support infrastructure, energy, food security, transport, and social development
