Reform-focused program aims to mobilize additional commercial financing
MANILA: The Asian Development Bank (ADB) has approved an $800 million financing package to help Pakistan strengthen its public financial management and improve fiscal sustainability through broad institutional reforms.
The Improved Resource Mobilization and Utilization Reform Program, Subprogram 2 consists of a $300 million policy-based loan and a landmark policy-based guarantee of up to $500 million—ADB’s first of its kind. This guarantee is expected to unlock up to $1 billion in additional funding from commercial lenders, providing much-needed budgetary support as Pakistan continues its economic stabilization efforts.
“Pakistan has made notable progress in restoring macroeconomic stability,” said ADB Country Director for Pakistan, Emma Fan. “This program reinforces the government’s reform agenda aimed at improving revenue collection, expenditure efficiency, and creating fiscal space for inclusive growth.”
The initiative supports wide-ranging reforms across key areas, including tax policy and administration, digital infrastructure, public expenditure and cash management, and investment facilitation. By addressing chronic revenue shortfalls and boosting administrative efficiency, the program aims to reduce fiscal deficits and ease public debt pressures, while maintaining space for essential social and development spending.
ADB noted that the program is backed by comprehensive technical assistance and coordinated collaboration with Pakistan’s other development partners to ensure the continuity and sustainability of fiscal reforms.
Pakistan, a founding member of the ADB, has received over $52 billion in assistance since 1966. ADB support has focused on areas such as infrastructure, energy security, food systems, transport, and social services—forming a cornerstone of the country’s long-term development agenda.
The Manila-based lender remains one of the most active multilateral partners in Pakistan. With 69 member countries—50 from the Asia-Pacific region—ADB continues to provide innovative financial solutions and policy support to tackle complex development challenges across the region.
