Pakistan to get $2.75bn 'budget support from ADB in four years'

• Pakistan is likely to receive $800mn in FY 2024-2025.
• Pakistan expected to get $650mn every year from the ADB. 
• Other int'l financial institutions have also shown their confidence.

ISLAMABAD: Pakistan’s securing of a new $7 billion loan programme from the International Monetary Fund (IMF) has opened the door for funding from other global financial institutions, with the Asian Development Bank (ADB) reportedly agreeing to provide additional billions in loans to the country.

Government sources privy to the development told The News that Pakistan was expected to get $2.75 billion in budget support from the ADB over four years, including $800 million in financial year 2024-2025. Whereas, Pakistan is estimated to receive $650 million of budget support annually from the bank in the next three fiscal years.

“Pakistan is expected to receive $650 million in budget support from the ADB every year from fiscal year 2025-26 to fiscal year 2027-28,” said the sources.

After this, other international financial institutions have shown their confidence in Pakistan, which gives Pakistan better financing prospects in the coming years.

On September 13, the ADB had approved a $320 million loan to support the rehabilitation of roads in Khyber Pakhtunkhwa, enhancing safe and all-weather connectivity in rural areas.

The Khyber Pakhtunkhwa Rural Roads Development Project will upgrade around 900 kilometres of rural roads in the province that are susceptible to floods and are in poor condition, according to an ADB press release.

Amid Prime Minister Shehbaz Sharif-led government's efforts to tackle various challenges on the economic front, the administration earlier this month secured a commitment of foreign loans amounting to $3.2 billion from international creditors including Saudi Oil Facility (SOF) of $1.2 billion for the next 12 months, The News reported.

The loan pledges include $1.2 billion loan facility promised by Saudi Arabia, $1 billion in commercial loans from Dubai Islamic Bank (DIB), $600 million from SCB, and around $430 million from Islamic Development Bank's International Islamic Trade Finance Corporation (ITFC) facility.

The development follows the IMF Executive Board's approval of a new $7 billion loan program in September, which was subsequently accompanied by a first tranche of $1.03 billion.