Islamabad: Pakistan is poised to receive $2.75 billion in budget support from the Asian Development Bank (ADB) over the next four years, with an initial disbursement of $800 million expected in FY 2024-2025, daily The News has reported.
Next annual funding of $650 million is anticipated for fiscal years 2025-26 through 2027-28, according to a report.
Reports suggest that ADB has agreed to provide the budget support. The country’s recent $7 billion IMF loan program has renewed confidence of international financial institutions, which is why additional funding commitments are coming.
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Other foreign lenders, like the Saudi Oil Facility and Dubai Islamic Bank, have pledged $3.2 billion in loans for Pakistan, easing the government’s financial issues.
The ADB recently approved a $320 million loan for the Khyber Pakhtunkhwa Rural Roads Development Project, aimed at improving connectivity in rural flood-prone areas.
This funding builds on earlier support, reinforcing the ADB’s commitment to Pakistan’s development and stability.
This boost comes amid Pakistan’s intensified efforts to secure international financing, reinforcing positive market sentiment and the prospect of sustainable economic growth, the report added.
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It is expected that the World Bank will also come up with enhanced financial support in addition to Pakistan’s friendly countries. Countries like Saudi Arabia, China, the UAE, and others will like take steps for a positive impact on Pakistan’s economic health by enhancing investment and encouraging the private sector, already confident after the IMF program and support from foreign lenders and the ADB.
Investors from the UAE, Saudi Arabia, Russia, the US, and other countries are already taking interest in Pakistan’s growing market.