The Asian Development Bank (ADB) has approved an $800 million financing package for Pakistan. This aims to support the country's fiscal sustainability and public financial management. The approval comes amid Pakistan's debt and reform pressures.
The package includes a $300 million policy-based loan. It also features ADB's first policy-based guarantee of up to $500 million. This is intended to mobilize up to $1 billion from commercial lenders.
The funding is part of the Improved Resource Mobilisation and Utilisation Reform Program. This program supports fiscal and governance reforms. These reforms include overhauls in tax policy, public expenditure management, and digital governance.