Pakistan and the Asian Development Bank (ADB) have reaffirmed their strategic partnership aimed at accelerating economic reforms, strengthening development outcomes and expanding private sector–led growth, as both sides seek to align future cooperation with Pakistan’s evolving development priorities.
The commitment was reiterated during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and an ADB delegation led by Country Director Emma Fan and Director General for Central and West Asia Leah Gutierrez. According to an official press release, the meeting focused on reviewing progress on ongoing reforms and discussing future areas of collaboration under Pakistan’s broader economic and development agenda.
Senator Aurangzeb acknowledged ADB’s continued support in key areas including budget financing, climate resilience, social sector development and structural reforms. He emphasized, however, the need for a stronger shift toward results-based development programs that are anchored in clearly defined key performance indicators. According to the finance minister, improving project readiness and execution has become a priority for the government, particularly in light of past implementation delays that weakened development impact and slowed reform outcomes.
The discussions also covered Pakistan’s ongoing macroeconomic stabilization under the International Monetary Fund’s Extended Fund Facility. Senator Aurangzeb highlighted recent external validations of Pakistan’s reform progress, including improved sovereign credit ratings, successful IMF program reviews and the approval of climate-related financing. He said these developments reflected growing international confidence in Pakistan’s economic direction and policy consistency.
The finance minister reiterated the government’s commitment to reforms across critical sectors, including taxation, energy, state-owned enterprises, privatization and public financial management. He noted that these reforms are essential not only for stabilizing the economy but also for creating space for sustainable, private sector–driven growth over the medium to long term.
Highlighting recent progress, Senator Aurangzeb pointed to the privatization of a small bank, renewed investor interest in strategic transactions and ongoing restructuring in the energy sector, including power distribution companies. He stressed that delivering visible and successful privatization deals is critical to building market credibility, attracting investment and sustaining reform momentum.
The minister also cited improving trends in exports, growth in IT and IT-enabled services, resilient remittance inflows and a contained current account deficit as positive indicators of macroeconomic stabilization. He reaffirmed Pakistan’s commitment to trade liberalization and enhancing competitiveness, noting that sustained export growth is central to long-term economic resilience.
On behalf of the ADB, Country Director Emma Fan commended Pakistan’s reform efforts and underscored the bank’s focus on development results. She emphasized the importance of faster project preparation, streamlined approval processes and timely disbursements to ensure that development financing translates into tangible outcomes on the ground.
ADB officials confirmed the institution’s readiness to extend further budget support in alignment with the IMF program, while also outlining potential areas for future engagement. These include insurance and pension reforms, public-private partnerships, and expanded involvement in climate-related and social sector initiatives.
The delegation also signaled an expanded role for the private sector through instruments such as guarantees, public-private partnerships and infrastructure transactions. Potential areas mentioned included transport and airport-related infrastructure, reflecting ADB’s interest in supporting commercially viable projects that can crowd in private investment.
In addition, ADB noted that it is strengthening its in-country presence to deepen engagement with federal and provincial stakeholders, improve coordination and support faster implementation of development projects.
Both Pakistan and the ADB agreed to maintain close coordination to advance reform priorities and development objectives under the upcoming country partnership framework and beyond 2026. The renewed engagement reflects a shared focus on moving from policy commitments to implementation, with an emphasis on measurable results, private sector participation and long-term economic sustainability.
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