Islamabad, June 3, 2025: The Asian Development Bank (ADB) has moved ahead with an $800 million support package for Pakistan, disregarding India’s protests.
The ADB executive director for Pakistan Noor Ahmed dismissed India claims regarding misuse of the funds. Instead, he raised concerns on India’s alleged involvement in supporting terrorism in Balochistan and Khyber Pakhtunkhwa.
The ADB executive director for Pakistan Noor Ahmed countered Indian allegations of misuse of ADB funds. He instead raised concerns over India’s rule in financing terrorism in Balochistan and Khyber Pakhtunkhwa.
Originally planned for May 28, the ADB board meeting took place today, June 3. The approved financial assistance consists of a $300 million policy-based loan and a $500 million guarantee. This guarantee will allow Pakistan to raise as much as $1.5 billion through foreign commercial borrowing.
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This loan forms the second part of ADB’s Resource Mobilization Program. The $500 million guarantee is especially important given Pakistan’s weak credit standing, which, despite a recent Fitch upgrade, remains at B-.
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Unlike project-specific lending, this financial guarantee is not intended for infrastructure or development schemes. Rather, it is aimed at helping Pakistan strengthen its foreign reserves. A small fee will be charged by the ADB for issuing the guarantee.
