ADB Pledges $2 Billion Annual Aid to Bolster Pakistan's Economy

The Asian Development Bank (ADB) has promised to provide Pakistan with $2 billion annually in new loans from 2024 to 2027, totaling $8 billion. This support comes amid Pakistan's financial struggles and inability to secure cheaper loans due to poor credit ratings. ADB President Masatsugu Asakawa reaffirmed commitment to Pakistan's economic resilience and regional integration.

The Asian Development Bank (ADB) has pledged to extend annual loans of $2 billion to Pakistan, starting from 2024. This promise comes at a critical time for Pakistan, which faces financial difficulties and deteriorated credit ratings. The Express Tribune newspaper reported this assurance following ADB President Masatsugu Asakawa's interaction with Pakistani officials on Monday.

The Manila-based institution aims to provide $8 billion over four years, with $1 billion per year offered at a concessional 2 percent fixed rate. Despite a staff-level agreement with the International Monetary Fund (IMF), Pakistan increasingly borrows at high-interest rates, suggesting lenders' concerns about Pakistan's creditworthiness.

Credit rating downgrades present obstacles in accessing foreign capital. ADB's Asakawa met with Pakistan's Economic Affairs Minister Ahad Cheema to discuss development and macroeconomic reforms. Additionally, Asakawa inaugurated a new resident mission in Pakistan, signaling the start of ADB's upcoming Pakistan Country Partnership Strategy for 2026 to 2030. The strategy will focus on structural reforms, economic stability, and regional cooperation through the CAREC program.

(With inputs from agencies.)