Pakistan signs $300 million loan deal with Asian Development Bank for resource mobilisation reforms

Pakistan and the Asian Development Bank (ADB) signed a $300 million loan agreement on Wednesday for the “Improved Resource Mobilization and Utilization Reform Programme (Subprogramme-II).” 

The agreement was signed by Dr. Kazim Niaz, Secretary of the Economic Affairs Division, and Emma Fan, ADB’s Country Director for Pakistan.

The ceremony, attended by senior officials from both the Pakistani government and ADB, highlights Pakistan’s commitment to strengthening its macroeconomic stability and advancing fiscal consolidation. 

The programme seeks to introduce structural reforms aimed at improving trade, revenue generation, and capital market development.

In addition to the $300 million loan, the agreement includes a Policy-Based Guarantee (PBG) of $500 million, supported by a sovereign counter-guarantee. 

This will enable Pakistan to raise $1 billion in commercial financing, bringing the total financing package to $800 million. This funding is expected to play a crucial role in Pakistan’s ongoing efforts to stabilise its economy and drive macroeconomic recovery.