ADB unveils support package for Asia-Pacific amid Middle East conflict

The Asian Development Bank (ADB) has announced a financial support package to help developing member countries (DMCs) in Asia and the Pacific mitigate economic impacts from the ongoing US-Israel war on Iran.

The package includes fast-disbursing budget support and trade finance to secure imports of essential goods, including oil, ADB President Masato Kanda said today in a press statement.

"ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil,” Kanda said.

 "This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty,” he added.

The press statement notes that the ADB has ample resources to safeguard existing and planned operations, while expanding emergency support in line with DMC needs, including utilising its countercyclical lending buffer.

ADB said it is closely monitoring global market developments and their implications for the region, particularly energy price volatility, inflationary pressures, and external account balances.

Disruptions to shipping routes have already increased costs and delivery times, according to the latest ADB analysis.

It also noted that supply risks extend beyond energy to industrial inputs such as petrochemicals and fertilisers, with implications for agriculture and food production. Tourism- and remittance-dependent economies face additional vulnerabilities, while the conflict is tightening financial conditions across the region, putting pressure on currencies and capital flows.

The support package has two main components. The first is fast-disbursing budget support for countries facing fiscal pressures, using ADB's Countercyclical Support Facility to help governments stabilise economies and protect vulnerable populations.

The second is the Trade and Supply Chain Finance Program, which supports the private sector in ensuring critical imports, including energy and food, continue to flow. ADB has reactivated support for oil imports under the programme on an exceptional basis, acknowledging that economies across the region are being severely affected by surging oil prices and supply chain disruptions.

ADB has begun discussions with severely affected DMCs on immediate support and will continue working with governments, development partners, and the private sector to coordinate responses, the bank said.