The Asian Development Bank (ADB) increased its financial commitments to Pakistan in 2025, approving $3.672 billion, which is 22 per cent higher than the $2.995 billion recorded in the previous year. The expansion reflects the bank’s growing engagement in new sectors, including Pakistan’s mineral resources industry.

According to ADB’s Annual Report 2025, the institution also provided $1.485 billion in new support to Pakistan’s public sector during the year, marking a rise of around one-third compared to $1.113 billion in 2024. A large share of these funds was extended under ordinary capital resources on commercial terms.

The bank highlighted a policy-backed guarantee mechanism in Pakistan designed to reduce lending risk for commercial banks and encourage financing for small and medium-sized enterprises. Through this mechanism, around $1 billion in private sector financing was mobilised.

ADB also supported Pakistan’s mineral development strategy by approving financing for a copper-gold mining project, aimed at strengthening global supply chains for critical minerals. The bank said it is also assisting in developing links between mineral extraction and manufacturing industries.

In addition, ADB is providing advisory assistance to Pakistan for preparing frameworks related to digital skills development, while also supporting investments aimed at improving girls’ participation in science, technology, engineering and mathematics (STEM) education.

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The report noted that Pakistan continues to face significant fiscal constraints that limit public investment in essential services. In response, ADB approved an $800 million programme consisting of a $300 million policy-based loan and up to $500 million in guarantees. This package is expected to help Pakistan raise an additional $1 billion in financing.

In education, ADB approved funding for at least 1,700 STEM laboratories across schools, with half of them planned for girls’ institutions, alongside a $100 million loan and a $7 million grant.

Globally, ADB’s total commitments from its own resources reached $29.3 billion in 2025, reflecting a 20 per cent increase from the previous year. The bank also reported strong private sector engagement, with $5.5 billion directed towards private sector development.

Across the region, South Asia received $9.7 billion, making it the largest recipient, followed by Southeast Asia, Central and West Asia, East Asia, and the Pacific.

ADB said it undertook major institutional reforms during the year, including changes to its charter to expand lending capacity by 50 per cent without requiring additional capital from shareholders. It also revised its energy policy, improved procurement systems, and introduced a new framework to support critical minerals value chains linked to clean energy and digital industries.

The bank said these reforms are intended to make its financing more flexible, faster, and better aligned with development needs across Asia and the Pacific.

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The bank also stressed gender disparities in Pakistan’s economy, estimating a financing gap of around 37 per cent for women-led enterprises. To address this, it committed $350 million to expand access to credit and support women entrepreneurs, with an estimated two million women expected to benefit.

In education, ADB approved funding for at least 1,700 STEM laboratories across schools, half of which will be established in girls’ institutions to promote participation in science and technology fields.

Regionally, South Asia remained the largest recipient of ADB funding with $9.7 billion in commitments, ahead of Southeast Asia and Central and West Asia.

The bank also reported $5.5 billion in private sector development commitments, reflecting its increasing focus on blended finance and risk-sharing instruments to mobilise commercial capital.

ADB implemented several institutional reforms during 2025, including amendments to its charter to expand lending capacity by 50 per cent without a general capital increase. It also revised its energy policy, streamlined procurement processes, and introduced a new framework for critical minerals development.

For Pakistan, the report suggests growing access not only to concessional financing but also to private capital mobilisation tools and risk-sharing mechanisms as the country continues to address fiscal and structural challenges.