THE PHILIPPINES signed a $1.5-billion financing agreement with the Asian Development Bank (ADB) to help cushion the economic impact of the Middle East conflict, the Department of Finance (DoF) said.
In a statement on Tuesday, the DoF said Secretary Frederick D. Go signed the agreement as a 236.64 billion-yen package on Oct. 6 for the Assistance for Greater Resilience and Alleviation of Poverty (AGAPAY) program.
“AGAPAY will help the government sustain its response to the economic impact of the Middle East crisis and fund measures that support vulnerable sectors, protect livelihoods, and help Filipino families cope with these challenges,” Mr. Go said.
The package, which was approved by the ADB on Sept. 24, will provide budgetary support for the government’s response to economic shocks and oil supply disruptions arising from the conflict, particularly through its Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT).
President Ferdinand R. Marcos, Jr. declared a one-year state of energy emergency via Executive Order (EO) No. 110 in March, citing threats to the availability and stability of the energy supply.
The EO also adopted UPLIFT as a whole-of-government response framework covering measures to ensure sufficient fuel and electricity supplies, keep public and commercial transport affordable, provide targeted financial assistance to vulnerable groups, and support the repatriation and reintegration of overseas Filipino workers affected by the conflict.
“These interventions aim to ease pressure on household budgets, sustain livelihoods, and protect vulnerable Filipinos from the effects of global economic disruptions,” the DoF said.
According to the DoF, the package forms part of the government’s 2026 external financing program.
The funds will be provided through the ADB’s Countercyclical Support Facility, which supports countries in responding to economic crises.
According to the ADB, the program will help fund fare discounts, fuel and fertilizer subsidies, assistance to small electric cooperatives, as well as medical relief and cash assistance for vulnerable households.
The ADB noted that the Philippines imports nearly all its fuel and relies heavily on imported fertilizer, leaving it vulnerable to global price increases and supply disruptions.
It also said about 1.1 million Filipino workers were deployed to the Middle East in 2025, with remittances from the region accounting for about 18% of the country’s $35.6 billion in overall remittances last year.
At the end of August, the National Government’s (NG) outstanding debt was at a record P19.61 trillion, up 1.12% from a month earlier.
For 2026, the NG projects its outstanding debt to hit P19.77 trillion, comprising P13.23 trillion in domestic debt and P6.54 trillion in external debt. — Justine Irish D. Tabile