Islamabad: Pakistan will receive major financial support from the Asian Development Bank (ADB) over the next four years, following the approval of a USD 7 billion loan program from the International Monetary Fund (IMF). Asian Development Bank has committed an additional USD 2.75 billion in loans, including USD 800 million for the fiscal year 2024-25, and USD 650 million each year for the next three years.
This support reflects renewed trust from global financial institutions in Pakistan’s efforts to improve its economy. The IMF’s approval, which included an initial USD 1.03 billion installment, played a key role in securing this assistance, as it highlighted Pakistan’s dedication to economic reforms.
In a separate move, the ADB also approved a USD 320 million loan to improve 900 kilometers of rural roads in Khyber Pakhtunkhwa (KP). This project aims to boost rural connectivity, making it easier to travel in areas affected by flooding and poor roads.
Additionally, Prime Minister Shehbaz Sharif’s government has secured USD 3.2 billion from other international sources, including a USD 1.2 billion oil facility from Saudi Arabia, USD 1 billion from Dubai Islamic Bank, USD 600 million from Standard Chartered Bank, and USD 430 million from the Islamic Development Bank.
Finance Minister Muhammad Aurangzeb highlighted these financial commitments as positive steps toward economic stability. He noted that Pakistan is working to eliminate the non-filer category in taxes and increase its tax-to-GDP ratio, showing a broader push for reform.
These funds provide critical support as Pakistan faces challenges with debt repayments, foreign exchange reserves, and inflation. This financial backing will help Pakistan implement economic reforms and invest in essential infrastructure.
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