The Asian Development Bank (ADB) has indicated it will provide Pakistan with an additional $1 billion in financing, while approving an $80 million development package, according to officials.

The package includes $30 million in loans and $50 million in guarantees.

The ADB’s 2025 annual report noted limited investment in Pakistan’s essential services and development projects due to financial constraints. The approved program aims to reduce the budget deficit and government debt.

The report highlights increased funding for social sectors, improved taxation, and enhanced revenue collection. Additionally, $35 million has been allocated to boost women’s economic participation, addressing significant gaps in financial inclusion.

ADB also stressed climate risks, including heavy rainfall, flooding, and glacial melt, affecting Pakistan.

A $25 million Green Climate Fund is supporting water and agricultural systems. Furthermore, the bank approved a modern financing package for copper and gold mining projects in the country. In 2025, ADB invested $29.3 billion across the region.