ADB to Increase Transparency in Pakistan's Financial Lending Procedures
The Asian Development Bank (ADB) granted technical assistance to improve Pakistan's borrowing procedures.
The grant-based assistance will focus on implementing the Sustainable Development Finance Policy (SDFP), strengthening fiscal risk management methods, and recording, managing, and reporting the public debt.
The ADB claimed that while Pakistan's public debt is sustainable, macro-financial shocks, including changes in primary and fiscal deficits, real interest rate movements, and currency rate depreciation, continue to threaten debt sustainability.
ADB's debt sustainability support will be strengthened by IDA's SDFP principles (IDA). SDFP's debt sustainability enhancement programme gives incentives for governments to shift toward sustainable development financing, the report added.