The Asian Development Bank (ADB) made fresh commitments worth $3.672bn to Pakistan in 2025, up 22pc from $2.995bn the previous year, as it ventured into new areas such as the mineral 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 loan commitments were made on ordinary commercial terms.
“In Pakistan, a policy-based guarantee is helping to mitigate credit risk for commercial bank lending to smaller enterprises and to mobilise commercial financing of $1bn,” 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 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 $1bn in additional financing.
The program 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.
Also, Pakistan 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.
The program aims to empower two million women, enhance their entrepreneurial capacities, and advance reforms that promote equitable economic opportunities nationwide.
The program will also finance the construction of at least 1,700 multipurpose STEM laboratories in selected schools, at least 50pc of which will be established in girls’ schools, with a particular focus on marginalised communities where negative social norms discourage female students’ participation in STEM. ADB’s $100m loan for the program is accompanied by a $7m grant.
Overall, ADB committed $29.3bn from its own resources in 2025 while advancing key institutional reforms to help Asia and the Pacific navigate change and turn challenges into opportunities in a year marked by complexity and uncertainty.
“In 2025, ADB delivered unprecedented levels of support, with a 20pc increase over 2024 and expected impacts of more than 3.3m jobs and benefits for over 180m people,” said ADB President Masato Kanda.
“This shows ADB’s ability to deliver at a scale and with the speed that match the demands of Asia and the Pacific.”
Loans, grants, equity investments, guarantees, and technical assistance provided to governments and the private sector increased by 20pc year-on-year to $29.3bn across the region. This was boosted by an additional $14.7bn from partners.
Private sector development was a key priority for ADB in 2025, comprising $5.5bn of its commitments, while half of its public sector commitments directly supported infrastructure, reforms, and institutions to unlock private investment.
“ADB is uniquely equipped to support private sector development, as its public and private sector operations are under one roof, form one legal entity, and share one balance sheet,” the bank said.
ADB also committed $8.3bn in Central and West Asia, $1.4bn in East Asia, $680m in the Pacific, $9.7bn in South Asia, and $9bn in Southeast Asia, with $302m allocated to regional projects. Finance, transport, and public sector management were the top three sectors to receive funding.
ADB approved groundbreaking institutional reforms in 2025 to deliver high-quality and well-targeted support to developing member countries. These included an amendment to the ADB Charter to remove the bank’s lending limitation and enable a 50pc increase in financing capacity without requiring a general capital increase from shareholders.
It also updated its energy policy to improve energy access and security in developing member countries, streamlined procurement procedures to enhance quality, sustainability, and value for money, and adopted a new approach to support critical minerals-to-manufacturing value chains, enabling the responsible and sustainable use of materials essential for renewable energy and digital technologies.
