Pakistan, ADB sign landmark $ 300 million loan agreement

ISLAMABAD: Pakistan and Asian Development Bank (ADB) on Wednesday signed a landmark USD$ 300 million “Improved Resource Mobilization And Utilization Reform Program (Subprogram II)” loan agreement.

The Government of Pakistan and Asian Development Bank (ADB) signed a $300 million loan agreement for the “Improved Resource Mobilisation and Utilization Reform Program (Subprogram-II)”. Statements were made from both sides.

Dr. Kazim Niaz, Secretary of the Economic Affairs Division, and Ms. Emma Fan, Country Director, Pakistan Resident Mission, ADB signed the Loan Agreement. The ceremony was attended by senior officials from the Government of Pakistan and ADB.

The signing of the agreement underscores Pakistan’s commitment to prioritize macroeconomic stabilization and fiscal consolidation through enhanced domestic resource mobilization.

This program is designed in a programmatic mode and aims to introduce structural reforms in trade, revenue generation and capital market development. A Policy Based Guarantee (PBG) of $ 500 million is also associated with this policy-based loan (PBL), backed by a sovereign counter-guarantee and indemnity to raise commercial financing of $1.00 billion.

The total financing package of $ 800 million will significantly contribute to Pakistan’s ongoing macroeconomic recovery and stabilization efforts.