ADB urges peace between Pak, India
The Asian Development Bank (ADB) has expressed concern over rising tensions between Pakistan and India, warning that instability in the region could hinder economic growth and disproportionately impact the poor and vulnerable.
"We hope for peaceful resolutions in all regions, as conflict ultimately harms the most vulnerable populations," said ADB President Masato Kanda in response to a question from Pakistani journalist, Aamir Ghauri, during a press briefing at ADB's Annual Meeting in Milan.
While avoiding direct comment on political conflicts, Kanda stressed that ADB remains committed to supporting the region through economic cooperation.
The statement comes amid India's decision to ban the import of goods originating from or transiting through Pakistan, as well as prohibiting Pakistani ships from docking at its ports. The move follows a deadly attack on tourists in the disputed Kashmir region, which has escalated tensions between the two nuclear-armed neighbours.
"ADB has supported peace and stability through economic cooperation, and we will continue to do that," he said.
Responding to a question from The Express Tribune on the possibility of a reduced interest rate for Pakistan following its qualification for an International Monetary Fund (IMF) programme, he said, "We maintain an independent research team that evaluates all available data. We have a very good relationship with international organisations, but we apply our own analysis."
When asked about the reduced growth forecast for Asia in 2026, Kanda acknowledged ADB's modest projection of 4.7% growth for emerging Asia, attributing the cautious outlook to trade disruptions and uncertainty in financial markets. "There may be more impact not only from trade decrease but also instability in financial markets. It's not clear at the moment," he said.
On broader global challenges, Kanda described the current environment as possibly "the most difficult global environment since 194445," as nationalism and trade fragmentation upend decades of progress driven by globalisation. He called for reforming the international financial architecture to better serve developing countries, emphasising the need to "upgrade the regime for the benefit of poor and vulnerable countries."
From New Delhi, a journalist from Mint asked what India and other emerging economies must do to catch up with developed nations by 2050. "Reforms to boost domestic demand, reduce inequality, and open up the economy are essential," said the ADB president. He stressed the importance of private sector development to spur innovation and job creation, while urging governments to invest in high-quality infrastructure and human capital, including vocational training.
On the issue of migration and border controls in Western economies, and its effects on remittances Kanda noted, "Remittances are sometimes the largest source of foreign currency for many countries. This has enormous impact on the poor and vulnerable." He added that, in principle, managed migration can be a "win-win" for global productivity if handled properly, though it remains a politically sensitive issue.
In response to an Economic Times query on de-dollarisation, the ADB chief said the US dollar remains dominant due to institutional trust and liquidity, particularly the Federal Reserve. "Although its share has declined slightly in reserves, the dollar remains resilient," he said, while also urging countries to maintain confidence in their monetary policies and consider developments in digital currencies.
From Bangladesh, The Financial Express asked about strengthening regional trade in Asia. Kanda stressed the need for trade harmonisation, digitalisation, and customs modernisation to boost interregional commerce. "This crisis is an opportunity to diversify exports and deepen trade agreements," he said.
He concluded by reaffirming ADB's commitment to South Asia's development goals through inclusive growth, cooperation, and strategic investment.
$26b boost for Asia-Pacific food security by 2030
The ADB president also announced a sweeping $26 billion expansion of its food security programme across Asia and the Pacific, bringing total planned investment to $40 billion by 2030.
When asked why ADB is increasing its financing for food at this time given that more and more countries are finding greater value for their respective economies through bilateral and private sector engagements, Kanda said the move responds to "one of the most serious issues for the population"rising food prices, growing hunger, and the risk of job losses. "People are being forced to choose between a meal for their families or transport to their jobs," he said.
Kanda, who assumed office as the 11th president of the ADB in February this year, said the initiative will channel $18.5 billion through governments and $7.5 billion through the private sector. "Food access is critical in these uncertain times," Kanda emphasised. "The agriculture and food sector employs 40% of the region's workforce. Our support will help drive job creation and boost agribusiness growth."
He also warned that Asia's current food systems are degrading the environment. "Food takes up 70% of global water, 50% of habitable land, and causes 80% of biodiversity loss," he said. "We need to change how we produce food for a healthy planetand we can't wait."
ADB's expanded support includes digital tech for farmers, soil restoration, and a new $150 million natural capital fund to back climate-smart agriculture.
US tariffs and Asian economies
The ADB president also discussed the challenges posed by US tariffs under the Trump administration, urging Asian economies to turn these uncertainties into opportunities. "Asian countries are more exposed to shocks, but they are stronger than in the past," he said. Kanda pointed out the need for economic policies to "safeguard stability" and enhance "regional connectivity."