ADB approves $800 million program to support Pakistan’s public finance reforms

A woman walks past the logo of the Asian Development Bank (ADB) outside the bank's headquarters in Manila on April 15, 2025. (AFP/File)
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Updated 03 June 2025
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ADB approves $800 million program to support Pakistan’s public finance reforms

  • ADB says the package will support tax reforms and digitalization to help boost fiscal sustainability
  • It includes a $500 million guarantee to help Pakistan unlock up to $1 billion from commercial banks

KARACHI: The Asian Development Bank (ADB) on Tuesday approved an $800 million financing package for Pakistan to help the country improve fiscal sustainability, strengthen public financial management and support economic reforms.

The funding, part of the Improved Resource Mobilization and Utilization Reform Program (Subprogram 2), includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million, which is expected to help Pakistan raise as much as $1 billion from commercial banks.

“Pakistan has made significant progress in improving macroeconomic conditions,” ADB’s Country Director for Pakistan, Emma Fan, said in a statement. “This program backs the government’s commitment to further policy and institutional reforms that will strengthen public finances and promote sustainable growth.”

The program supports reforms to tax policy, administration and compliance, along with improvements in public expenditure management, cash handling and digitalization.

It also aims to facilitate investment and private sector development, with the broader goal of reducing Pakistan’s fiscal deficit and public debt while creating space for development and social spending.

Khurram Schehzad, adviser to Pakistan’s finance minister, also confirmed the development in a social media post, saying “diplomacy” led by the finance ministry and economic affairs division had helped secure majority support at ADB Board.

The ADB said the program is backed by a comprehensive support package involving technical assistance and coordination with development partners to help Pakistan build long-term fiscal resilience.

A founding member of ADB, Pakistan has received more than $52 billion in public and private sector financing from the bank since 1966, spanning infrastructure, energy, transport, food security and social services.

ADB plays a leading role in supporting inclusive and sustainable development across Asia and the Pacific.


Pakistan opposition to continue protest over ex-PM Khan’s health amid conflicting reports

Updated 16 February 2026
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Pakistan opposition to continue protest over ex-PM Khan’s health amid conflicting reports

  • Pakistan’s government insists that the ex-premier’s eye condition has improved
  • Khan’s personal doctor says briefed on his condition but cannot confirm veracity

ISLAMABAD: Pakistan’s opposition alliance on Monday vowed to continue their protest sit-in at parliament and demanded “clarity” over the health of jailed former prime minister Imran Khan, following conflicting medical reports about his eye condition.

The 73-year-old former cricket star-turned-politician has been held at the high-security Adiala prison in Rawalpindi since 2023. Concerns arose about his health last week when a court-appointed lawyer, Barrister Salman Safdar, was asked to visit Khan at the jail to assess his living conditions. Safdar reported that Khan had suffered “severe vision loss” in his right eye due to central retinal vein occlusion (CRVO), leaving him with just 15 percent sight in the affected eye.

On Sunday, a team of doctors from various hospitals visited the prison to examine Khan’s eye condition, according to the Adiala jail superintendent, who later submitted his report in the court. On Monday, a Supreme Court bench led by Chief Justice Yahya Afridi observed that based on reports from the prison authorities and the amicus curiae, Khan’s “living conditions in jail do not presently exhibit any perverse aspects.” It noted that Khan had “generally expressed satisfaction with the prevailing conditions of his confinement” and had not sought facilities beyond the existing level of care.

Having carefully perused both reports in detail, the bench observed that their general contents and the overall picture emerging therefrom are largely consistent. The opposition alliance, which continued to stage its sit-in for a fourth consecutive day on Monday, held a meeting at the parliament building on Monday evening to deliberate on the emerging situation and discuss their future course of action.

“The sit-in will continue till there is clarity on the matter of [Khan's] health,”  Sher Ali Arbab, a lawmaker from Khan's Pakistan Tehreek-e-Insaf (PTI) party who has been participating in the sit-in, told Arab News, adding that PTI Chairman Gohar Ali Khan and Opposition Leader in Senate Raja Nasir Abbas had briefed them about their meeting with doctors who had visited Khan on Sunday.

Speaking to reporters outside parliament, Gohar said the doctors had informed them that Khan’s condition had improved.

“They said, 'There has been a significant and satisfactory improvement.' With that satisfactory improvement, we also felt satisfied,” he said, noting that the macular thickness in Khan’s eye had reportedly dropped from 550 to 300 microns, a sign of subsiding swelling.

Gohar said the party did not want to politicize Khan’s health.

“We are not doctors, nor is this our field,” he said, noting that Khan’s personal physician in Lahore, Dr. Aasim Yusuf, and his eye specialist Dr. Khurram Mirza had also sought input from the Islamabad-based medical team.

“Our doctors also expressed satisfaction over the report.”

CONFLICTING ACCOUNTS

Despite Gohar’s cautious optimism, Khan’s personal physician, Dr. Yusuf, issued a video message on Monday, saying he could neither “confirm nor deny the veracity” of the government’s claims.

“Because I have not seen him myself and have not been able to participate in his care... I’m unable to confirm what we have been told,” Yusuf said.

He appealed to authorities to grant him or fellow physician, Dr. Faisal Sultan, immediate access to Khan, arguing that the ex-premier should be moved to Shifa International Hospital in Islamabad for specialist care.

Speaking to Arab News, PTI’s central information secretary Sheikh Waqas Akram said Khan’s sister and their cousin, Dr. Nausherwan Burki, will speak to media on Tuesday to express their views about the situation.

The government insists that Khan’s condition has improved.

“His eye [condition] has improved and is better than before,” State Minister Talal Chaudhry told the media in a brief interaction on Monday.

“The Supreme Court of Pakistan is involved, and doctors are involved. What medicine he receives, whether he needs to be hospitalized or sent home, these decisions are made by doctors. Neither lawyers nor any political party will decide this.”