Brief
Pakistan plans $500 million ADB loan for pension reforms
The loan would fund a three‑year reform programme to make the pension system more sustainable.
By Felo News Desk · Published
Pakistan intends to obtain a $500 million loan from the Asian Development Bank to finance a three‑year public‑sector pension reform programme, the finance ministry said.
The Transforming Public Sector Pension Program is slated to begin on 1 November 2026 and run until November 2029, with the loan equivalent to about Rs138.48 billion. The plan includes administrative, financial and institutional measures, and the ADB is expected to provide technical assistance worth Rs159.2 million.
Finance Ministry officials said the existing pension system, costing roughly Rs1.169 billion annually, is a growing fiscal burden that limits spending on health, education and infrastructure. A contributory pension scheme for new employees was introduced in 2024, and further reforms will build on that framework.
Key facts
- Pakistan seeks a $500 million loan from the Asian Development Bank for pension reforms (dailytimes.com.pk)
- The Transforming Public Sector Pension Program will run from 1 Nov 2026 to Nov 2029 (dailytimes.com.pk)
- The loan equals about Rs138.48 billion and includes Rs159.2 million in technical assistance (dailytimes.com.pk)
Sources
- [1] dailytimes.com.pk — originally reported as “Pakistan seeks $500m ADB loan for pensions”
