ADB proposes $750,000 technical assistance to tackle Pakistan's governance, institutional gaps

Profit by Pakistan Today reported that the Asian Development Bank (ADB) has put forward a $750,000 technical assistance plan for the country. The lender pointed to recurring lapses in governance, fiscal management and regulation as obstacles to private investment, efficient public finances and competitiveness. It tied these problems to a narrow tax base, inflexible spending and weak budget controls, which it argues reduce revenue collection and blur the business environment.

The support comes from the Technical Assistance Special Fund and is meant to be flexible and driven by demand. Project documents describe the facility as Supporting Public Sector Reform and Institutional Capacity in Pakistan, which will cover analysis, policy guidance, project readiness and skills building at national and provincial tiers. The bank said the strain is sharper in Balochistan, where dated systems and limited capacity are slowing public financial management.

The package will also support the Trade and Logistics for Private Sector Competitiveness Project and readiness for upcoming ADB-financed schemes. The bank highlighted heavy dependence on road freight, poor infrastructure and unclear rules as holding back trade and access to credit. It anticipates that stronger institutions and reforms will bring indirect gains for poverty reduction and social welfare, even though the package does not directly aim at poor households.