ISLAMABAD: The Asian Development Bank (ADB) made fresh commitments worth $3.672 billion to Pakistan in 2025, up 22 per cent from $2.995bn the previous year, as it ventured into new areas such as the minerals sector.

In its Annual Report 2025, released on Thursday, the Manila-based lending agency also reported new financial support commitments of $1.485bn to the public sector for the year, a one-third increase from $1.113bn in 2024. Most of these loans were extended on ordinary commercial terms.

“In Pakistan, a policy-based guarantee is helping to mitigate credit risk for commercial bank lending to smaller enterprises and mobilise $1bn in commercial financing,” the bank said, adding that, under ADB’s approach to supporting critical minerals-to-manufacturing value chains, it approved an innovative financing package for a copper-gold mine in Pakistan to strengthen the global copper supply chain.

The bank will also provide advisory support to Pakistan to help prepare road maps for digital skills development, in addition to investing in girls’ education and participation in science, technology, engineering, and mathematics (STEM) subjects.

The bank noted that Pakistan continues to face fiscal pressures that limit investment in essential services and inclusive development. In 2025, ADB committed an $800m package — including a $300m policy-based loan and up to a $500m policy-based guarantee — enabling the government to mobilise an additional $1bn in financing.

The programme aims to reduce fiscal deficits and public debt to create more space for social spending. It focuses on improving tax policy, administration, and compliance; enhancing public expenditure and cash management; and promoting digitalisation and private investment.

Pakistan also continues to face one of the world’s widest gaps in economic participation, largely due to women’s limited access to finance and their low representation in formal employment, it said. To help close the finance gap, estimated at about 37pc, ADB committed $350m to foster women-owned business ventures.

The support comprises a $300m policy-based loan to strengthen legal and regulatory frameworks for women’s inclusion, and a $50m financial intermediation loan to expand access to credit and guarantees for women entrepreneurs.

Published in Dawn, April 24th, 2026