Pakistan has approved two foreign loans worth a total of $100 million aimed at improving tax system performance, enhancing transparency in public spending, and ensuring compliance with laws by government institutions.
According to official documents, the World Bank will provide $60 million under the Pakistan Public Resources for Inclusive Development Program, while the Asian Development Bank (ADB) will extend $40 million through the Accelerating State-Owned Enterprise Transformation Program.
At current exchange rates, the total loan equals roughly PKR 281 billion, a sum large enough to build a new airport or hundreds of schools. However, the funds are intended as budget support, meaning they will not be used to create new physical assets.
Sources at the Ministry of Finance stated that the loans are primarily aimed at supporting Pakistan’s foreign exchange reserves. Meanwhile, the International Monetary Fund (IMF) has not yet facilitated access to major foreign loans.
Government officials highlighted that these loans are part of ongoing efforts to stabilize the economy, improve fiscal management, and strengthen state institutions’ operational capacity.
