ADB commits $3.67bn to Pakistan, focuses on reforms, minerals

ISLAMABAD: The Asian Development Bank (ADB) has further expanded its support for Pakistan by announcing new financing commitments totaling $3.672 billion for 2025.

This is a 22 percent increase over the previous year, according to the international financial institution’s annual report, which includes the minerals sector for the first time.

According to the report, the ADB has pledged $1.485 billion in new financing for Pakistan’s public sector, a third more than in 2024.

The bank has also approved an innovative financing package for a copper and gold mine project in Pakistan to strengthen the value chain from minerals to manufacturing, which aims to improve the global copper supply chain.

To address Pakistan’s fiscal pressures and deficit, the bank has pledged an $800 million package, including a $300 million policy loan and a $500 million policy guarantee.

The initiative aims to help the government reduce fiscal deficits and public debt through improved tax policies, public expenditure management, and digitalization to create space for spending on the social sector.

Regarding women’s economic inclusion, ADB has allocated $350 million to provide financial support to women-owned businesses. The program aims to empower about 2 million women and improve their entrepreneurial skills.

In addition, to encourage girls in the education sector, a $100 million loan and $7 million in grants will be used to establish 1,700 multipurpose laboratories, more than 50 percent of which will be built in girls’ schools.

ADB President Masato Kanda said in the report that the bank has provided record levels of support in the Asia-Pacific region despite complex challenges, which will create millions of jobs.

The report further states that advisory support will also continue to be provided for the promotion of digital skills and educational reforms in Pakistan so that the Sustainable Development Goals can be achieved.