Govt seeks $750 million loan from ADB to cut pension liabilities, improve public-private partnerships

The federal government has cleared negotiations for $750 million in Asian Development Bank financing, split between pension reform and public-private partnership (PPP) development, Profit by Pakistan Today reported. The proposed package includes $500 million for changes to the federal pension system and $250 million to strengthen the framework for PPPs.

The pension programme is intended to contain long-term obligations, improve administration and introduce a defined contribution scheme. Officials said pension costs were squeezing room for spending on areas including health, education and infrastructure; the committee also asked for an assessment of results from earlier reform lending before linking new support to measurable outcomes.

The PPP facility would support legal and institutional improvements, with $200 million on relatively expensive terms and $50 million at concessional rates. Pakistan had earlier borrowed $250 million for similar PPP objectives, while the proposal cited total national debt and liabilities of nearly Rs100 trillion by June 2026, including public debt of Rs86.7 trillion, or 68.3% of GDP.