Pakistan and the Asian Development Bank (ADB) have discussed ways to deepen cooperation on structural reforms, private-sector development, investment and access to finance as the country moves towards a broader growth agenda. The discussions took place during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and ADB Vice President for South, Central and West Asia Yingming Yang. The meeting covered several areas of economic policy, with particular attention given to private-sector participation, small and medium-sized enterprises, investment mobilisation and reforms aimed at supporting long-term economic growth.
Yingming Yang acknowledged Pakistan’s recent progress in macroeconomic stabilisation, fiscal management and improvement in the external account. He also appreciated the country’s stronger sovereign credit ratings, linking these developments with continued reform efforts and improvements in underlying economic fundamentals. The ADB vice president reaffirmed the institution’s commitment to supporting Pakistan’s development agenda and indicated that the bank’s strategic priorities remain closely aligned with the government’s ongoing reform programme.
Muhammad Aurangzeb said the government was now seeking to move beyond macroeconomic stabilisation towards sustainable and inclusive economic growth. He identified investment, exports, employment creation and greater private-sector participation as key priorities for the next phase of the country’s economic agenda. The Finance Minister also stressed the importance of institutionalising reforms across domestic resource mobilisation, public finance, energy, insurance and pensions to establish a stronger foundation for long-term economic growth.
The meeting placed particular emphasis on improving access to finance for small and medium-sized enterprises, which the government considers important for increasing employment, investment and exports. Pakistan and ADB explored ways to improve the competitiveness of local SMEs and integrate them more effectively into global value chains. Greater access to financing and stronger connections with international markets could help businesses expand their operations while increasing their ability to participate in export-oriented supply chains.
Aurangzeb welcomed the ADB’s expanding role beyond conventional sovereign financing, particularly its increasing support for private-sector operations and public-private partnerships. He highlighted the need to mobilise greater domestic and private capital through innovative financing mechanisms, co-financing arrangements and increased participation from international development and financial institutions. The approach is intended to broaden the sources of capital available for development projects while increasing private-sector involvement in areas traditionally supported through public financing.
The two sides also discussed potential areas for expanded ADB cooperation, including infrastructure, transport, clean energy, water resource management and climate resilience. These areas were considered alongside other development priorities that require investment and stronger project implementation capacity. The discussions also covered Pakistan’s insurance transformation programme, pension reforms and public-private partnership initiatives, as well as measures aimed at improving project preparation and implementation capabilities.
Yingming Yang reaffirmed ADB’s willingness to expand support for private-sector development, SME value-chain financing and other priority sectors. He also emphasised the importance of maintaining fiscal discipline as Pakistan transitions from stabilisation towards sustainable economic growth. According to the discussions, continued fiscal discipline will remain an important component of the reform process as the government seeks to create conditions for higher investment and private-sector activity.
Both sides reviewed ongoing and pipeline policy-based operations that are aimed at advancing structural reforms and supporting Pakistan’s longer-term economic transformation. The discussions indicate that future cooperation is expected to extend across multiple areas rather than remain limited to traditional sovereign financing. Private-sector development, SME financing, infrastructure, energy, climate resilience and institutional reforms were among the areas highlighted during the engagement.
Muhammad Aurangzeb stressed that future ADB assistance should remain aligned with Pakistan’s priorities, including private-sector-led growth, stronger export competitiveness, improved access to finance, infrastructure development, climate resilience and social protection. The government’s focus on these areas reflects its broader objective of creating a more sustainable growth model supported by investment and private-sector activity. The Finance Minister also highlighted the importance of using development financing to strengthen the capacity of domestic institutions and improve the implementation of projects.
Senior officials from the Finance Division, Economic Affairs Division and ADB also participated in the meeting. The engagement between Pakistan and the development bank comes as the country seeks to consolidate recent improvements in its macroeconomic position while addressing structural constraints that have limited investment and growth. With ADB support expected to increasingly include private-sector operations, SME value-chain financing and public-private partnerships, both sides are looking to strengthen cooperation around investment, exports, infrastructure and reforms that can support Pakistan’s longer-term economic objectives.
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