Islamabad, May 29, 2025: The Asian Development Bank (ADB) has postponed an $800 million financial package for Pakistan by five days, following a formal request from India.
Originally planned for discussion on May 28, the board meeting will now be held on June 3. As per ADB regulations, any board member is allowed to request a one-time delay in proceedings, an option India exercised, according to The Express Tribune.
This move comes in the wake of India’s failed attempt to block a $1 billion IMF installment to Pakistan. The delayed assistance includes a $300 million policy-based loan and a $500 million guarantee aimed to secure up to $1.5 billion in foreign commercial loans.
This package represents the second phase of funding under ADB’s Resource Mobilization Program. The $500 million guarantee is considered vital given Pakistan’s weak credit profile, which remains at a B- rating despite a recent upgrade by Fitch Ratings.
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Despite the postponement, Pakistan’s broader foreign loan plans remain unaffected. The government still intends to secure over $1 billion in commercial loans, supported by the ADB’s credit guarantee.
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Pakistan has allocated $3.8 billion in foreign commercial loans for the ongoing fiscal year (FY24), although actual inflows remain limited due to its low credit standing. The ADB’s guarantee is intended to help reinforce Pakistan’s foreign exchange reserves and will come at a minimal service fee.
