Islamabad: Asian Development Bank (ADB) has approved 800 million dollars financing package for Pakistan under Resource Mobilization Reform Program.
In a post on his X handle, Adviser to Finance Minister Khurram Schehzad said diplomacy led by Economic Affairs and Ministry of Finance secures majority support at ADB Board.
The package includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million, aimed at mobilising as much as $1 billion from commercial lenders, the Philippines-based lender said on Tuesday.
The funding comes under the Improved Resource Mobilisation and Utilisation Reform Program, Subprogram 2, which supports wide-ranging fiscal and governance reforms.
These include overhauls in tax policy and administration, public expenditure management and digital governance — all part of Islamabad’s efforts to contain the fiscal deficit and reduce public debt.
“Pakistan has made significant progress in improving macroeconomic conditions,” said ADB Country Director Emma Fan. “This programme backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.”
