ADB Approves $800 Million Package to Boost Pakistan's Economic Reforms

The Asian Development Bank (ADB) has sanctioned an $800 million financial package for Pakistan, as part of efforts to enhance fiscal sustainability and public financial management. The announcement was made by Khurram Schehzad, an advisor to the finance minister, who shared the development via social media on Tuesday.

This lucrative package comprises a $300 million policy-based loan (PBL) and a $500 million programme-based guarantee (PBG). The money is intended to support the Pakistani government's commitment to further policy and institutional reforms, especially within the realm of tax policy, administration, and compliance.

ADB's country director for Pakistan, Emma Fan, emphasized the significance of the programme, noting it aims to back the government's commitment to institutional reforms. The measures involve tax system improvements, revenue increases, and promotion of fiscal discipline, while also enhancing digitalisation and private sector development.

(With inputs from agencies.)