Pakistan, ADB reaffirm partnership; vow deeper cooperation on reforms, climate resilience

• Finance Minister meets ADB President Masato Kanda on his first overseas visit
• Aurangzeb highlights macroeconomic stabilization, upgrades in sovereign ratings, and reform agenda
• ADB pledges continued support for climate adaptation, infrastructure, and market diversification
• Both sides explore innovative tools including Green Bonds, blended finance and Panda Bond issuance
• Partnership to be aligned with ADB’s upcoming Country Strategy 2026–2035 and Pakistan’s development priorities

ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Wednesday reaffirmed their long-standing development partnership, pledging to deepen collaboration on economic reforms, climate resilience, and innovative financing instruments as Finance Minister Muhammad Aurangzeb met ADB President Masato Kanda in Islamabad, Radio Pakistan reported.

Welcoming the ADB president on his first overseas visit after assuming office, Aurangzeb said the choice of Pakistan underscored the Bank’s confidence in the country’s reform agenda and long-term economic prospects. He appreciated ADB’s consistent support, particularly in times of crisis such as the recent devastating floods, and reaffirmed Pakistan’s commitment to building climate resilience and strengthening disaster preparedness, Radio Pakistan said.

The meeting was attended by senior officials from the Ministry of Finance, FBR, Ministry of Economic Affairs, and ADB’s leadership team including Country Director Emma Fan, Director General for Central and West Asia Leah Gutierrez, and Pakistan’s Executive Director to ADB Noor Ahmed.

The finance minister highlighted Pakistan’s steady macroeconomic stabilization, pointing to sharply declining inflation, an improved current account, and upgrades in sovereign ratings by international credit agencies. He said these gains had helped reduce borrowing costs and set the stage for sustained recovery.

Aurangzeb underscored ADB’s crucial role in supporting Pakistan’s reform drive, particularly in resource mobilization, financial inclusion of women, disaster risk financing, and clean energy transition. He also lauded ADB’s contributions to agriculture insurance, transport and connectivity infrastructure, and resilience in the financial sector.

Looking ahead, he called for deeper collaboration in energy transition, transport and logistics, human capital development, and innovative financing solutions such as Green Bonds, blended finance, and Debt-for-Nature swaps. He also sought ADB’s partnership in developing Pakistan’s Public-Private Partnership (PPP) pipeline and supporting structural reforms in taxation, SOEs, tariffs, and regulatory modernization.

The minister invited enhanced cooperation under the upcoming ADB Country Partnership Strategy 2026–2035, aligned with Pakistan’s medium-term development priorities.

ADB President Masato Kanda, for his part, commended Pakistan’s resilience and recent reform efforts. He pledged continued ADB support in key areas including climate change adaptation, demographic challenges, infrastructure, and market diversification. He also welcomed Pakistan’s plan to launch its first Panda Bond, assuring the Bank’s readiness to assist with innovative financing mechanisms.

Kanda reaffirmed that ADB would remain a “trusted and long-term partner” in Pakistan’s development journey, working closely with the government to ensure sustained growth and prosperity.

The meeting concluded with both sides reiterating their strong mutual commitment to advancing the Pakistan–ADB development partnership in the years ahead.