KEY POINTS
- ADB plans about $10 billion in financing for Pakistan under its 2026-30 strategy
- The framework prioritises private sector-led growth, inclusion and climate resilience
- Reforms in energy, transport, water, skills and public finance are central to the plan
ISLAMABAD: The Asian Development Bank pledged nearly $10 billion in financing to Pakistan over the next five years under a new country strategy aimed at supporting private sector-led growth, according to details released on Wednesday.
The 2026-30 Country Partnership Strategy sets out three core pathways for engagement: enabling private sector development, advancing inclusion and empowerment, and enhancing resilience and sustainability.
The Manila-based lender said these priorities would be supported by reforms in governance, institutional capacity, gender inclusion, digital transformation and regional integration.
ADB Country Director for Pakistan Emma Fan said the strategy was designed to address Pakistan’s structural constraints and support lasting growth that benefits the broader population, particularly poor and vulnerable communities.
She said the lender intended to support both the public and private sectors through a mix of strategic investments and reforms to create jobs and stimulate economic activity.
The strategy comes at a time when Pakistan is seeking to consolidate recent macroeconomic stabilisation after years of repeated external shocks and stop-start growth cycles.
According to the ADB, the new framework would help Pakistan break the ‘boom and bust’ cycle by putting greater emphasis on export- and investment-led growth.
Sustainable and inclusive growth must be supported by better public financial management, a more supportive business environment and investment in sectors with high economic impact.
Private sector development has been placed at the centre of the plan. The ADB said it would support policy reforms and investments aimed at reducing regulatory and compliance costs.
Such an effort would also improve infrastructure by widening access to finance, promoting public-private partnerships and increasing private operations.
It also identified major opportunities in critical minerals, railways and multimodal connectivity, energy security and clean energy, agriculture and value chains, integrated water resource management, and skills development.
To advance inclusion, the lender said it would prioritise human capital, better access to social services and women’s economic participation.
On resilience, the strategy highlights Pakistan’s high exposure to climate shocks and natural disasters.
It requires planned support for disaster risk management, climate adaptation and mitigation, flood and water management, food security and air quality improvement.
The ADB said Pakistan’s large youth population, growing digital ecosystem, natural resource base and strategic location offer significant long-term opportunities.
It noted that the country, with an estimated population of 240.5 million in 2025 and about 66 per cent of citizens under 30, could unlock stronger growth through a decisive shift toward private sector-driven expansion.
At the same time, the lender warned that Pakistan still faced deep-rooted challenges, including a narrow production and export base, a difficult business environment, weak public financial management, infrastructure gaps, governance weaknesses and persistent poverty.
These interlinked problems would require carefully sequenced reforms and well-targeted investment to transform economic stabilisation into durable and inclusive growth.
Pakistan’s economy had returned to growth, with gross domestic product expanding 3.1pc in FY2025 after a 0.2pc contraction in FY2023.
