The Asian Development Bank (ADB) has committed an additional $1.75 billion in financing to help the Philippines cushion the economic impact of the ongoing Middle East conflict. The pledge was made by ADB President Masato Kanda during a courtesy call on President Ferdinand R. Marcos Jr. at Malacañan Palace in Manila on Friday, May 15, 2026.
ADB's Support Package
Kanda informed Marcos that the ADB is prepared to extend additional policy-based and countercyclical lending, as well as trade finance, to assist the Philippines in managing fiscal pressures arising from the crisis. This proposed package is on top of the $2 billion in policy-based loans already being prepared for the country this year.
Kanda also reiterated the ADB's commitment to supporting measures that mitigate the effects of oil supply disruptions and other external shocks on the Philippine economy. "The Philippines is ADB's home, and we see the strain this crisis is placing on Filipino families, workers, and businesses," Kanda stated. "ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy's resilience."
Philippines' Vulnerability
The ADB noted that the Philippines remains highly exposed to global commodity disruptions due to its reliance on imported oil, fertilizers, and other essential goods. In response to the Middle East crisis, President Marcos earlier declared a national energy emergency and ordered the implementation of the Unified Package for Livelihoods, Industry, Food, and Transport (Uplift) program for vulnerable sectors.
The Uplift package includes fuel subsidies, reduced excise taxes on select oil products, and cash assistance for transport workers, farmers, fishers, and repatriated overseas Filipino workers.
Long-Term Resilience Measures
The ADB is also coordinating with the Department of Agriculture and the Department of Social Welfare and Development on long-term resilience measures. These include fertilizer security, social protection programs, energy security, clean energy initiatives, energy efficiency projects, and mass transit investments designed to reduce the country's vulnerability to fuel price shocks.
Founded in 1966, the ADB is a leading multilateral development bank focused on promoting sustainable, inclusive, and resilient growth across Asia and the Pacific. Its Philippine headquarters is located in Mandaluyong City.
