Pakistan’s recent $7 billion loan agreement with the International Monetary Fund (IMF) has opened doors for additional funding from other global financial institutions. The Asian Development Bank (ADB) is reportedly prepared to contribute further billions, with government insiders revealing that Pakistan is expected to receive $2.75 billion in budget support from the ADB over the next four years. This support includes $800 million allocated for the 2024-2025 fiscal year, with an estimated annual budget support of $650 million for the following three fiscal years.
According to these sources, “Pakistan is expected to receive $650 million in budget support from the ADB each year from fiscal year 2025-26 through fiscal year 2027-28.” This development has boosted international confidence in Pakistan’s financing prospects.
On September 13, the ADB approved an additional $320 million loan to support the Khyber Pakhtunkhwa Rural Roads Development Project, aimed at upgrading approximately 900 kilometers of flood-prone, deteriorating rural roads, as outlined in an ADB press release.
Meanwhile, the administration, led by Prime Minister Shehbaz Sharif, has also secured $3.2 billion in foreign loan commitments this month from international creditors, including a $1.2 billion Saudi Oil Facility (SOF) for the next 12 months. Other pledges include a $1.2 billion loan from Saudi Arabia, $1 billion in commercial loans from Dubai Islamic Bank (DIB), $600 million from Standard Chartered Bank (SCB), and $430 million from the Islamic Development Bank’s International Islamic Trade Finance Corporation (ITFC) facility.
This funding momentum follows the IMF Executive Board’s approval of Pakistan’s $7 billion loan program in September, with an initial $1.03 billion disbursed as the first tranche.
