The Asian Development Bank (ADB) approved a $ 800 million program to strengthen fiscal sustainability and improve public financial management in Pakistan, according to a statement issued by the Philippines headquarters.
The declaration said that subprogram 2 of the “improved resource reform and use reform program” includes a loan based on $ 300 million policies and the “first policy -based guarantee” of ADB of up to $ 500 million, which is expected to mobilize financing of up to $ 1 billion commercial banks.
“Pakistan has made significant progress in improving macroeconomic conditions,” said Pakistan director of ADB for Pakistan, Emma Fan.
“This program supports the government’s commitment to more policies and institutional reforms that will strengthen public finances and promote sustainable growth.”
The program supports long -range reforms to improve fiscal policy, administration and compliance, while improving public spending and cash management.
“It also promotes digitalization, investment facilitation and the development of the private sector. These measures are aimed at reducing the fiscal deficit and public debt of Pakistan, while creating space for social and development spending,” said the institution based in Manila.
The program is supported by a comprehensive support package, which includes technical assistance and close coordination with development partners, designed to help Pakistan build long -term fiscal resistance and stability, he added.
Khurram Schehzad, an advisor to the Minister of Finance, confirmed that the financial institution has approved the program. “Diplomacy led by Economic Affairs and Ministry of Finance ensures the majority support at the ADB Board,” he said in an X.
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