Pakistan, ADB align on growth push

December 16, 2025 (MLN):  Pakistan and the Asian Development Bank (ADB) reaffirmed their strategic partnership to fast-track economic reforms, enhance development impact, and expand private sector–led growth.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met an ADB delegation led by Country Director Emma Fan and Director General for Central and West Asia Leah Gutierrez, where both sides reviewed progress on reforms and discussed future cooperation under Pakistan’s evolving development agenda, said a press release issued.

The finance minister acknowledged ADB’s continued support in budget financing, climate resilience, social sector development, and structural reforms, while stressing the need to shift toward results-based and KPI-driven development programs.

He said improving project readiness and execution was a government priority, further noting that implementation delays in the past had weakened development outcomes.

Discussions also covered Pakistan’s macroeconomic stabilization under the IMF Extended Fund Facility (EFF).

Senator Aurangzeb said improved credit ratings, successful IMF reviews, and approval of climate financing reflected growing confidence in the country’s reform path. He reiterated the government’s commitment to reforms in taxation, energy, state-owned enterprises, privatization, and public financial management.

Highlighting recent progress, the minister pointed to the privatization of a small bank, renewed investor interest in strategic transactions, and ongoing restructuring of the energy sector and power distribution companies. He added that visible and successful privatization deals were essential to building credibility and sustaining reform momentum.

The minister further cited positive trends in exports, IT services, remittances, and a contained current account deficit, while reaffirming Pakistan’s commitment to trade liberalization and competitiveness.

Speaking on behalf of ADB, Emma Fan praised Pakistan’s reform progress and emphasized the bank’s focus on development results, faster project preparation, and streamlined processes to ensure timely disbursements.

ADB officials confirmed readiness to extend further budget support aligned with the IMF program and outlined future engagement in insurance, pension reforms, public-private partnerships, and climate and social sector initiatives.

Further signaled expanded private sector involvement through potential guarantees, PPPs, and infrastructure transactions, including airports, while noting the strengthening of its in-country presence to deepen engagement.

Both sides agreed to maintain close coordination to advance reforms and development priorities under the upcoming country partnership framework and beyond 2026.

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