ADB approves $500m loan to support Philippines’ PFM reforms

The Asian Development Bank (ADB) approved on Wednesday a $500 million loan to support the Philippines in implementing public financial management (PFM) reforms and delivering quality public services to its citizens.

The Public Financial Management Reform Programme (Subprogramme 1) aims to enhance national budget frameworks, empower local governments, and establish a PFM system in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

“This new program signifies the Philippine government’s commitment to building an open government founded on the principles of efficiency, transparency, accountability, and good governance,” said ADB Philippines Country Director Pavit Ramachandran.

The programme enhances the efficiency and transparency of public funds, encourages private sector involvement in public services, and supports climate resilience and preparedness for Filipinos. It is based on the government’s PFM Reforms Roadmap 2024‒2028, developed with ADB and endorsed by President Ferdinand R. Marcos Jr. It focuses on digitalising PFM systems and establishing a supportive regulatory framework for public–private partnerships (PPPs).

Attribution: ADB

Subediting: Y.Yasser