The Asian Development Bank (ADB) approved $ 800 million for Pakistan to strengthen fiscal sustainability and improve public financial management, an official said on Tuesday.Khurram Schehzad, advisor to the finance minister confirmed the development in a brief statement on social media, saying that the package includes a $ 300 million policy-based loan (PBL) and a $ 500 million programme-based guarantee (PBG).
He said, “ADB approves $ 800 million financing package for Pakistan” under the Resource Mobilisation Reform Programme.Separately, the Philippines-based lender also confirmed the development in a statement, saying that subprogramme 2 of the “Improved Resource Mobilisation and Utilisation Reform Programme” includes a policy-based loan of $ 300 million, and ADB’s “first-ever policy-based guarantee” of up to $ 500 million, which is expected to mobilise financing of up to $ 1 billion from commercial banks.“Pakistan has made significant progress in improving macroeconomic conditions,” said ADB country director for Pakistan, Emma Fan.
“This programme backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.” The programme supports far-reaching reforms to improve tax policy, administration, and compliance while enhancing public expenditure and cash management.“It also promotes digitalisation, investment facilitation, and private sector development. These measures aim to reduce Pakistan’s fiscal deficit and public debt while creating space for social and development spending,” it said.
Quoting ministry officials, The Express Tribune newspaper reported that it aims to enhance domestic resource mobilisation and stabilise the economy through financial reforms.
The support will help improve the tax system, increase revenues, and promote fiscal discipline. The programme is also expected to broaden the country's revenue base and marks a key step toward economic self-reliance.
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