KARACHI – The Asian Development Bank (ADB) has indicated providing Pakistan with an additional $1 billion in financing, while officials confirmed approval of an $800 million package for the country, including a $300 million loan and $500 million in guarantees.
According to ADB’s Annual Report 2025, investment in basic services and development projects in Pakistan remains limited due to financial pressures. The approved program aims to reduce the budget deficit and public debt.
The report states that increased funding for the social sector, along with improvements in the tax system and revenue collection, is expected. An allocation of $350 million has been made to enhance women’s economic participation, highlighting a significant gap in financial inclusion for women in Pakistan.
ADB also warned that climate change is increasing the risks of heavy rainfall and flooding in the region, while glacier melting poses additional threats to Pakistan. However, $250 million from the Green Climate Fund is being used to strengthen water and agricultural systems.
The annual report further noted that a modern financing package has been approved for Pakistan’s copper and gold mining projects, and the ADB invested $29.3 billion across the region in 2025.
