The government has approved an ADB loan for Pakistan of $750 million, equal to about Rs209 billion, from the Asian Development Bank (ADB, a Manila-based multilateral lender) to support pension reforms and a public-private partnership (PPP) programme. The clearances came from a concept clearance committee headed by Deputy Chairman Planning Commission Ahsan Iqbal, officials familiar with the meeting said, as Pakistan’s total debt and liabilities approach Rs100 trillion.
How the $750 million package is split
The proposed borrowing is divided into two parts. Some $500 million, or about Rs139 billion, would go to pension reforms. Another $250 million, or about Rs70 billion, would promote sustainable PPPs—projects in which the state and private firms share roles and risks.
The government is still negotiating the loans with the ADB and will settle procedural details after the committee issues formal minutes. The Finance Ministry told the panel that the country’s gross financing needs are estimated at more than 20 percent of GDP under its annual borrowing plan.
What the pension reforms aim to do
The $500 million pension programme is meant to strengthen fiscal sustainability, governance, administration and service delivery in the federal pension system. Goals include cutting existing pension liabilities, putting a defined contribution pension scheme into operation—where workers and employers pay into individual accounts—and improving employee engagement.
The Finance Ministry told the committee that rising pension spending and long-term liabilities were squeezing room for health, education, infrastructure, climate resilience and social protection. The Planning Commission had asked for results from earlier pension-reform borrowing; the ministry said it would provide those details later. The committee asked for a report on outcomes from the previous project, and Mr Iqbal said those results should be tied to the new programme’s objectives. He also argued that fiscal stabilisation gained through borrowed budget support should help raise funding for the Public Sector Development Programme (the government’s development budget) and support growth and jobs.
PPP loan terms and earlier borrowing
The $250 million PPP loan is intended to strengthen the legal and institutional framework for partnerships at the federal level and to improve public investment and public financial management. Of that amount, $200 million would come through relatively expensive financing, while $50 million would carry concessional—cheaper—rates.
Pakistan had earlier borrowed another $250 million to build PPP laws, policies and institutions, including amendments to the Public Private Partnership Act, 2017. The Planning Commission recommended an impact assessment of that loan and sought a larger concessional share this time. The Finance Ministry said about half of Pakistan’s ADB portfolio already uses relatively expensive lending, and that available concessional funds have been allocated to other projects, so raising the concessional share here would reduce what those projects can receive.
According to the State Bank of Pakistan, total debt and liabilities reached nearly Rs100 trillion in June 2026, including Rs86.7 trillion in public debt. Public debt stood at 68.3 percent of GDP, above the sustainable limit set under the Fiscal Responsibility and Debt Limitation Act.
Aasan alfaaz mein
Hukumat ne Asian Development Bank se lagbhag 750 million dollar ka qarzah lene ki manzoori di hai. Is mein se zyada hissa federal pension system ki islahat ke liye hai, aur baqi hissa sarkari-private sharakaton (PPP) ko mazboot karne ke liye. Ye qarzah abhi bank ke sath final ho raha hai; asal asar tab clear hoga jab pehle projects ke natayij aur naye programme ke targets joray jayein. Aam shehri ke liye seedha faida abhi bills ya petrol rates badalne wala nahi, lekin is ka maqsad budget mein sehat, taleem aur development ke liye jagah banana hai.
