ISLAMABAD: The President of the Asian Development Bank (ADB) has reaffirmed continued support for Pakistan’s economic and development agenda while praising the country’s efforts towards market diversification.
Mr. Masato Kanda, made the commitment during a meeting with Pakistan’s Minister for Finance and Revenue, Muhammad Aurangzeb, here in Islamabad on Wednesday.
At the outset, the finance minister warmly welcomed the ADB President and expressed deep appreciation for ADB’s strong and consistent partnership with Pakistan. He conveyed gratitude for ADB’s expression of solidarity and reiterated Pakistan’s determination to build climate resilience and strengthen disaster preparedness in the aftermath of recent floods.
The minister also expressed his gratitude to the ADB President for prioritising Pakistan and choosing to visit it as the first country after assuming office, recalling with appreciation his earlier meetings with the President in Washington in April this year.
The finance minister also appreciated the ADB country team led by Ms. Emma Fan for their constructive engagement and continued support extended to the Ministry of Finance and the Government of Pakistan in advancing economic reforms and development priorities.
He highlighted Pakistan’s steady economic progress despite multiple challenges in recent years. He underlined that Pakistan had successfully stabilised its macroeconomic framework, with inflation declining sharply, a turnaround in the current account, and recent upgrades in Pakistan’s sovereign ratings by international credit agencies, which have helped lower the cost of borrowing.
Muhammad Aurangzeb acknowledged ADB’s continued and substantial support to Pakistan in recent years, pointing to the Bank’s strong backing for reforms in resource mobilisation, women’s financial inclusion, disaster risk financing, and the clean energy transition.
He also recognised ADB’s contributions to strengthening Pakistan’s agriculture insurance, transport and connectivity infrastructure, and ongoing support for building resilience in the financial sector.
He welcomed ADB’s strong medium-term commitment to Pakistan and encouraged enhanced collaboration in policy-based financing, capital markets development, private sector participation, and innovative instruments such as Green Bonds, blended finance, and Debt-for-Nature swaps. He also emphasized the importance of ADB’s partnership in supporting the government’s PPP pipeline and sectoral reforms to build long-term resilience.
The finance minister reaffirmed Pakistan’s strong commitment to reforms in taxation, tariff rationalisation, SOE restructuring, and regulatory modernisation, while appreciating ADB’s role as a dependable and long-standing development partner. He extended an invitation for enhanced collaboration under the upcoming ADB Country Partnership Strategy 2026–2035, aligned with Pakistan’s medium-term development priorities.
Advancing structural reforms
In reciprocation, the ADB President expressed appreciation for Pakistan’s economic reforms and resilience, commending the progress achieved in stabilising the economy and advancing structural reforms.
He assured ADB’s continued support in key areas, including climate change adaptation, population challenges, infrastructure development, and resource mobilisation. He also welcomed Pakistan’s efforts towards market diversification and pledged ADB’s readiness to assist in the launch of the inaugural Panda Bond and other innovative financing instruments.
Mr. Kanda reaffirmed ADB’s willingness to partner with Pakistan on its reform agenda, emphasising that ADB would continue to work closely with the Government of Pakistan to ensure sustained progress and prosperity.
The meeting concluded with a strong reaffirmation of mutual commitment to advancing the Pakistan–ADB development partnership in the years ahead.
