ADB's Work in Pakistan

ADB continues to support Pakistan’s economic recovery by strengthening public finance, social protection systems; helping with post-flood reconstruction; improving food security, social and human capital, urban services, and transport and energy infrastructure; and boosting climate action. ADB operations remain aligned with Pakistan’s evolving economic and development priorities.

Sovereign operations. As of 31 December 2024, ADB has committed 764 public sector loans, grants, and technical assistance totaling 43ドル.4 billion to Pakistan. ADB’s current sovereign portfolio in Pakistan includes 53 loans and 3 grants worth 9ドル.13 billion.

ADB provided financing for several sovereign projects in 2024 involving climate and disaster resilience, energy, post-disaster reconstruction, public–private partnerships, social protection, and transport.

ADB committed a 500ドル million policy-based loan for the Climate and Disaster Resilience Enhancement Program (Subprogram 1). The program will strengthen Pakistan’s institutional capacity for planning, preparedness, and response while increasing inclusive investment in disaster risk reduction and climate resilience.

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As a part of ADB’s multifaceted commitment to provide 1ドル.5 billion in total assistance from 2023 to 2025 for Pakistan’s 2022 flood recovery efforts, ADB approved a 400ドル million concessional loan for the Sindh Emergency Housing Reconstruction Project to help rehabilitate flood-damaged houses and community infrastructure and support livelihood recovery.

ADB committed a 320ドル million loan for the Khyber Pakhtunkhwa Rural Roads Development Project to upgrade around 900 kilometers of flood-susceptible rural roads in the province, including key routes that link remote communities to education, health care, and markets.

A 250ドル million policy-based loan for a program promoting sustainable public–private partnerships is helping the Government of Pakistan implement policies to create an enabling environment for fiscally affordable public–private partnerships and to promote inclusive economic growth.

ADB committed 200ドル million to modernize power distribution infrastructure in Pakistan and improve distribution companies’ ability to deliver reliable electricity. The Power Distribution Strengthening Project will focus on reducing energy losses during transit and enhancing the resilience of infrastructure against climate change and disaster-related risks.

ADB also committed 330ドル million in additional financing to strengthen Pakistan’s flagship social protection program. The results-based loan topped up the ongoing 627ドル million Integrated Social Protection Development Program, which is expanding grassroots-level social protection to alleviate poverty among women and their families. This will include enhancing access to education for children and youth from poor families and increasing access to health services and nutrition supplies in disaster-prone areas.

Nonsovereign operations . Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Pakistan as of 31 December 2024 amounted to 234ドル.94 million, representing 1.82% of ADB’s total private sector portfolio.

Cumulative disbursements. Cumulative sovereign and nonsovereign loan and grant disbursements to Pakistan amount to 33ドル.44 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.

Operational challenges. Political uncertainties, security issues, and external shocks continue to threaten Pakistan’s moderate economic recovery. Structural and institutional factors, as well as issues such as cumbersome land acquisition procedures, procurement delays, lack of counterpart funds, and currency and price fluctuations, affect project readiness, implementation, and outcomes. Regular tripartite portfolio review meetings among ADB, the government, and executing agencies are helpful in addressing these project-related issues.

Continued fiscal consolidation and policy reforms are key to improving Pakistan’s macroeconomic recovery and stability. Particularly important are efforts aimed at broadening the tax base; reforming state-owned enterprises; improving health, education, and climate resilience; and improving private sector engagement. Reforms are required to promote high value exports; expand social spending; reinforce the energy sector’s governance and sustainability; and implement structural reforms that will strengthen institutions, bring transparency, and create jobs.

Knowledge Work

ADB’s Pakistan National Urban Assessment – Pivoting Toward Sustainable Urbanization outlined factors contributing to the declining quality of life in cities and recommended measures to support sustainable urbanization.

A working paper titled Adoption of Farm Mechanization for Clean Air: Evidence from Farm Trials in Pakistan analyzed the cost–benefit of improved mechanical rice harvesting resulting in higher profits for smallholder farmers.

Pakistan’s macroeconomic landscape and economic prospects were discussed in the 2024 Asian Development Outlook reports.

The Pakistan Resident Mission’s Capacity Development Resource Center continues to impart tailored knowledge and skills to enhance the performance of ADB-assisted projects and programs.

ADB Projects in Pakistan Project data sheets for loans, grants, TAs

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Pakistan:

• Sovereign cofinancing: 5ドル.14 billion for 56 investment projects and 112ドル.18 million for 69 technical assistance projects since 1973
• Nonsovereign cofinancing: 14ドル.91 billion for 25 investment projects since 1993

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Future Directions

Guided by the Country Partnership Strategy (2021–2025) for Pakistan, ADB will continue supporting the government in implementing reforms and economic recovery. Priorities include improving economic management, building resilience, boosting competitiveness, and developing the private sector.

The forthcoming country partnership strategy for Pakistan covering 2026–2030 will identify key challenges and development requirements, support the government in implementing key structural reforms, and boost economic resilience through a robust pipeline of public–private partnership and private sector development projects. The pipeline will focus on mitigating the impacts of climate change, investing in the social sector, digital transformation and good governance, and developing climate-smart infrastructure. ADB investments in the private sector will continue to help businesses unlock investments, promote entrepreneurship, and contribute to sustainable development. ADB’s knowledge work will continue to include policy advice, relevant knowledge products, and the transfer of best practices and experiences from other ADB members.

Last updated: 2 May 2025

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