The Asian Development Bank (ADB) has approved a major support initiative for Pakistan under subprogram 2 of its “Improved Resource Mobilization and Utilization Reform Program.” The package includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million, which is expected to help secure an additional $1 billion in financing from commercial banks.

Emma Fan, ADB’s Country Director for Pakistan, praised the country’s progress in stabilizing its macroeconomic framework. She highlighted that the program supports the government s ongoing efforts to implement institutional and policy reforms aimed at strengthening public finances and promoting sustainable economic growth.

A key focus of the program is on reforming tax policy and administration, improving compliance, and enhancing cash and public expenditure management. These reforms are intended to reduce Pakistan’s fiscal deficit and lower its public debt burden, while making room for increased spending on social and development initiatives.

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Additionally, the initiative places a strong emphasis on digital transformation, investment facilitation, and the promotion of private sector development. These efforts are aimed at modernizing Pakistan’s financial infrastructure and supporting long-term economic resilience.

The ADB noted that this program is backed by comprehensive technical assistance and coordinated efforts with international development partners, ensuring that Pakistan receives the strategic and financial support needed to build fiscal stability over the long term.