ADB reaffirms support for fiscal space generation

ADB reaffirms support for Pakistan’s reforms and economic stability in talks with government officials.

ISLAMABAD:

The Asian Development Bank (ADB) on Wednesday reaffirmed its continued support for Pakistan's structural reforms, fiscal space generation, and efforts to stabilise the economy.

This commitment was reiterated during a meeting between a delegation of ADB Executive Directors and Alternate Executive Directors and Federal Minister for Economic Affairs Ahad Khan Cheema. The delegation visited Pakistan to discuss the country's development priorities and macroeconomic reforms.

The ADB delegation is visiting Pakistan from October 6 to 12, 2024 for consultations with the government and key stakeholders to better align the bank's support with Pakistan's development goals. The visit reinforces the strong collaboration between the ADB and Pakistan, aimed at achieving sustainable development goals and enhancing economic stability.

During the meeting, Cheema highlighted the long-standing partnership between Pakistan and the ADB, recently strengthened by ADB President Masatsugu Asakawa's visit. He underscored the government's commitment to a comprehensive reform agenda designed to restore macroeconomic stability and foster sustainable growth.

Cheema outlined key areas of reform, including the digitisation of the tax system to enhance revenue generation, improvements in the energy sector, and the restructuring of state-owned enterprises (SOEs). He highlighted that these reforms were already yielding positive outcomes, such as a more stable currency, reduced inflation, and a stronger fiscal position.

He also emphasised Pakistan's priorities for ADB's support in critical sectors, including climate action, infrastructure development, and social uplift.