Pakistan is seeking more financing from the Asian Development Bank for major infrastructure projects and public private partnerships, including the $10 billion Karachi Peshawar Main Railway Line project, as the lender follows up on its new five year partnership strategy with the country.
An ADB delegation led by Vice President for South, Central and West Asia Yingming Yang is in Islamabad for discussions on Pakistan’s development priorities under the $10 billion Country Partnership Strategy for 2026 to 2030, which was approved by the ADB board in March.
The delegation held separate meetings with Economic Affairs Minister Ahad Khan Cheema and Finance Minister Muhammad Aurangzeb on Wednesday. Pakistan has already secured $2 billion in ADB financing for the Karachi to Rohri section of the 1,670 kilometer ML-1 project, which is currently under implementation.
The Economic Affairs Division is discussing additional financing options with the ADB, including guarantees and private sector partnerships. Cheema also urged the bank to expand its private sector operations in Pakistan, while highlighting ML-1 as a national flagship project.
The government also briefed the ADB on its fiscal, structural and governance reforms and plans to strengthen public private partnerships. Cheema said work was underway to improve project implementation and develop a pipeline of commercially viable projects, while privatization remained a government priority.
Yang welcomed improvements in Pakistan’s sovereign credit ratings and progress on macroeconomic stability. He also acknowledged Pakistan’s efforts to improve project readiness and said the country had provided an opportunity for the ADB to introduce innovative financing tools, including policy based guarantees and guarantees for Panda bond issuance.
The ADB vice president also reaffirmed the bank’s support for ML-1 and its early groundbreaking. He proposed setting up a working group on institutional reforms in Pakistan Railways, with the process expected to begin soon.
In a separate meeting with Aurangzeb, Yang praised Pakistan’s progress in macroeconomic stabilization, fiscal management and the external account, saying the improvements in sovereign credit ratings reflected continued reform efforts and stronger economic fundamentals.
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