The Asian Development Bank (ADB) has approved a $70 million concessional loan to help Kyrgyzstan strengthen fiscal resilience, improve governance, and modernize public financial management as the country pushes ahead with a new wave of economic reforms.

The financing will support Subprogram 2 of the Sustainable Fiscal Management and Governance Improvement Program, expanding reforms launched under the program’s first phase in 2024, The Caspian Post reports via Kabar.

ADB Country Director for the Kyrgyz Republic Zheng Wu said the initiative represents "an important step toward building a stronger and more resilient economy."

"By improving the governance of state-owned enterprises and modernizing tax administration, the government is creating a more transparent and predictable environment for businesses, investors, and citizens," Zheng Wu said.

Kyrgyzstan has experienced strong economic growth in recent years, but officials say the country remains vulnerable to external shocks, fiscal pressures, and climate-related risks.

The new ADB loan will help the government implement key legal, regulatory, and institutional reforms in several critical areas:

Public financial management

Governance of state-owned enterprises

Tax system modernization

Anti-corruption measures

A major focus of the program is improving how public money is planned, spent, and monitored.

Reforms include:

A unified system for program-based budgeting

Medium-term expenditure planning

Performance monitoring of government spending

Digital tools to modernize tax administration

Enhanced systems to track and prevent illicit financial flows

Simplified tax procedures for small businesses, especially women-led enterprises

The Asian Development Bank, founded in 1966, is one of the region’s largest multilateral development institutions and supports sustainable, inclusive, and resilient growth across Asia and the Pacific.