Pakistan has signed a $1 billion financing agreement with the Asian Development Bank (ADB) to boost its economic reform efforts and resource management strategies.
According to an official statement, the Ministry of Finance has entered into a five-year long-term financing deal with a group of commercial banks. Out of the total amount, $500 million is guaranteed by the ADB, offering a strong foundation for the arrangement.
The financing will be used under the Resource Mobilization and Utilization Reform Program to strengthen fiscal planning and improve the country’s financial outlook.
The agreement is structured as a syndicated loan, meaning several banks have come together to fund the amount.
These include Dubai Islamic Bank, Standard Chartered, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and Habib Bank Limited (HBL).
Government officials believe this deal will help ease financial pressure and pave the way for smoother economic reforms in the years ahead.
