The Asian Development Bank (ADB) on Tuesday approved a $800 million loan for Pakistan under the Resource Mobilization Reform Program.
In a post on his X handle, Adviser to Finance Minister Khurram Schehzad said diplomacy led by the Economic Affairs and the Ministry of Finance secures majority support at the ADB Board.
The funding includes a $300 million budget support loan and $500 million in guarantees aimed at helping Islamabad secure foreign commercial loans.
According to officials in the Ministry of Economic Affairs, the ADB Board of Governors had originally convened to meet on May 28 to consider the loan request.
However, the meeting was postponed at the request of the Indian executive director, in line with ADB rules allowing each member state a one-time extension.
The board eventually convened on June 3, approving the $800 million package, which will be used primarily to strengthen Pakistan’s foreign exchange reserves.
The funds are not intended for development projects, but to support the country’s external financing needs.
Analysts believe the Indian move was an attempt to delay Pakistan’s access to external funding, particularly in the wake of India’s unsuccessful bid to block the approval of the second tranche of a $1 billion loan by the International Monetary Fund (IMF) last month.
