Pakistan, JICA deepen development partnership, eye ML-1 cooperation

August 05, 2026 (MLN): Pakistan and the Japan International Cooperation Agency (JICA) agreed on Wednesday to expand their development cooperation, prioritizing infrastructure, workforce development, and sustainable economic growth during a meeting between Federal Minister for Economic Affairs Ahad Cheema and JICA President Dr. Tanaka Akihiko.

The discussions focused on broadening collaboration in key sectors to support Pakistan's long-term development agenda, according to the Ministry of Economic Affairs.

Cheema acknowledged JICA's decades-long support for Pakistan, noting that Japan's official development assistance of nearly $11.7 billion has contributed to the country's progress in energy, transport, agriculture, industry, water resources, health, education, and security., according to APP.

The minister invited JICA to participate in co-financing the Main Line-1 (ML-1) railway project, highlighting that the Asian Development Bank and other development partners are already backing the initiative.

He said the railway's modernization would strengthen transport infrastructure, improve trade and industrial connectivity, and support sustainable economic expansion.

Cheema also underscored the need to invest in skills development to strengthen Pakistan's human capital and better align the workforce with evolving domestic and international labour market requirements.

Seeking greater collaboration in the digital sector, he called for JICA's support in improving internet infrastructure in rural areas to enhance digital connectivity and create more opportunities for freelancers, entrepreneurs, and e-commerce businesses.

The minister further requested JICA's assistance in conducting feasibility studies for major development projects, saying strong project preparation is essential to attract investment and ensure effective implementation.

Dr. Tanaka responded that feasibility studies are among JICA's core areas of expertise and assured support for the government's efforts.

Cheema also highlighted the government's commitment to macroeconomic stability and structural reforms, stating that Pakistan has made substantial progress under the IMF's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) after successfully completing the Stand-By Arrangement (SBA).

He said the country has met all quantitative performance criteria and that the economy is on a stronger footing, supported by continued reforms and improving macroeconomic indicators.

Dr. Tanaka welcomed Pakistan's economic reform programme and praised the government's efforts to strengthen economic fundamentals.

He also said JICA would give due consideration to including the proposed ML-1 project in its future project pipeline, recognizing its potential to promote inclusive economic development.

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