ISLAMABAD: The Asian Development Bank (ADB) board is scheduled to meet on June 3, 2025, for the approval of an $800 million financing package for Pakistan.
According to government officials, the ADB Board was originally scheduled to meet on May 28 to approve two key components of the package: a $300 million budget support loan and $500 million in guarantees intended to help Pakistan secure foreign commercial loans.
However, the meeting was rescheduled to June 3 after India invoked a rule allowing any board member to request a one-time delay in consideration of agenda items.
Dr. Kazim Niaz, Secretary of Economic Affairs, confirmed the postponement and clarified that India exercised its right under the ADB policy, which permits such a deferral. He emphasized that Pakistan had been notified in advance and had escalated the matter to senior ADB leadership to minimize the delay.
The ADB’s country office declined to comment on the development.
The delay follows India’s unsuccessful attempt to block the $1 billion second loan tranche from the International Monetary Fund (IMF) to Pakistan. Observers view this latest move as part of India’s broader diplomatic campaign to hinder Pakistan’s access to international financing — particularly after military efforts failed to yield desired outcomes on the battlefield.
Despite the setback, Pakistan’s external financing plans remain on track, with officials confident that the funds will be disbursed into the State Bank’s accounts shortly after board approval on June 3.
However, economic analysts caution against overreliance on foreign loans, especially budgetary support financing that does not contribute to development projects. The ADB’s $800 million package is not designated for infrastructure or social sector development, but rather for bolstering foreign exchange reserves.
Dr. Niaz reiterated that no missteps were made by Pakistan’s representative on the ADB board, noting that the rules clearly allow such extensions. He also confirmed that the government actively engaged with ADB leadership to ensure the delay was kept to a minimum.
The incident highlights the need for greater strategic vigilance by Pakistan’s envoys at multilateral institutions like the World Bank, IMF, ADB, and AIIB, particularly as geopolitical rivalries increasingly spill over into economic diplomacy.
