Pakistan Seeks Financial Help Again: Who Approved the $544 Million Loan?

Pakistan’s struggling economy is once again in the global spotlight. Facing severe financial stress, the country has sought external assistance and secured a fresh loan worth $544 million. The funding has been jointly approved by the World Bank and the Asian Development Bank (ADB) in response to Pakistan's appeal for support in sectors like education and women’s economic empowerment.

On Wednesday, June 25, 2025, the World Bank approved a $194 million loan for Pakistan, while the Asian Development Bank signed off on an additional $350 million. The combined funds are aimed at promoting women's financial inclusion, empowering women economically, and expanding educational opportunities, particularly in underdeveloped regions.

According to a report by Pakistani news channel Samaa TV, the World Bank’s share of the loan will be allocated to two key development projects. These projects focus on enhancing access to education for children in Balochistan and improving water security in the region.

World Bank Country Director for Pakistan, Nazi Bahsin, stated that the initiative specifically targets children who have been deprived of formal education in Balochistan, aiming to uplift the province’s lagging education infrastructure.

Meanwhile, Pakistan’s overall economic indicators continue to paint a grim picture. As per the Economic Survey 2024–25, released on June 9, the country's total debt has surged to PKR 76,000 billion in the first nine months of the current fiscal year. Economic growth projections remain bleak, with GDP expected to grow by only 2.07% this year.

It’s worth noting that Pakistan also signed a $7 billion External Financing Facility (EFF) agreement with the International Monetary Fund (IMF) last year. Under this agreement, Pakistan has so far received two disbursements, with the second tranche released in May 2025.

Despite the influx of external funds, experts warn that debt servicing, structural reforms, and sustainable development remain critical challenges for Pakistan’s long-term economic recovery.