MANILA, June 3 (Xinhua) -- The Asian Development Bank (ADB) on Tuesday approved an 800 million U.S. dollar program to strengthen fiscal sustainability and improve public financial management in Pakistan.
The improved Resource Mobilization and Utilization Reform Program, Subprogram 2, includes a policy-based loan of 300 million dollars and ADB's first-ever policy-based guarantee of up to 500 million dollars, which is expected to mobilize financing of up to 1 billion dollars from commercial banks.
According to the ADB, the program supports far-reaching reforms to improve tax policy, administration, and compliance while enhancing public expenditure and cash management.
It also promotes digitalization, investment facilitation, and private-sector development, added the bank.
"These measures aim to reduce Pakistan's fiscal deficit and public debt while creating space for social and development spending," the bank said.
The bank added that the program is underpinned by a comprehensive support package designed to help Pakistan build long-term fiscal resilience and stability, including technical assistance and close coordination with development partners. ■
