Key reform areas identified by ADB include broadening the tax base, reforming state-owned enterprises, and improving health, education, and climate resilience.

ADB's ongoing support will focus on enhancing public finance, social protection, food security, and climate action initiatives in Pakistan.

The Asian Development Bank (ADB) has committed $200 million to modernize Pakistan's power distribution infrastructure, aiming to reduce energy losses and enhance resilience.

A significant $320 million loan has been dedicated to upgrading 900 kilometers of rural roads in Khyber Pakhtunkhwa to improve access to essential services.

To further support social initiatives, an additional $330 million has been allocated to strengthen Pakistan's social protection program, specifically targeting poverty alleviation among women and families.

ADB also approved a $400 million loan for the Sindh Emergency Housing Reconstruction Project, which focuses on rehabilitating flood-damaged infrastructure and supporting livelihoods.

According to ADB's recent Fact Sheet, fiscal consolidation and policy reforms are essential for enhancing Pakistan's macroeconomic stability.

Looking ahead, the upcoming Country Partnership Strategy for 2026–2030 will address major challenges and support structural reforms while enhancing economic resilience through public-private partnerships.

Additionally, a $500 million loan has been allocated for the Climate and Disaster Resilience Enhancement Program, aimed at strengthening institutional capacity for disaster risk reduction.

However, ADB warns that political uncertainty, security challenges, and external shocks are hindering Pakistan's economic recovery.

Moreover, a $250 million loan has been provided to promote sustainable public-private partnerships, encouraging fiscally responsible growth.

As of the end of December 2024, ADB has committed a total of $43.4 billion in loans, grants, and technical assistance to Pakistan, with 53 loans and 3 grants currently active worth $9.13 billion.