Pak seeks stronger ADB support
Pakistan andtr India laid out contrasting yet complementary visions at the 58th Annual Meeting of the Asian Development Bank (ADB) in Milan, on Monday, with India focusing on digital transformation and long-term development, and Pakistan calling for stronger support to sustain its economic recovery amid structural reforms.
Contrary to claims made by some Indian media outlets that the Indian Finance Minister, Nirmala Sitharaman, called on the ADB to stop lending to Pakistan, India emphasised its roadmap to becoming a developed nation by 2047, under the "Vikasit Bharat" mission led by Prime Minister Narendra Modi. The Indian delegation lauded the ADB president's client-centric, agile approach and welcomed the bank's capital adequacy reforms and new targets under ADB's Strategy 2030. Notably, India highlighted its progress in bridging the digital divide through initiatives like Digital India, which their finance minister said reshaped education, healthcare, governance, and financial services.
"It's an old adage that time is money. It holds relevance even today. Process reforms for reduction in processing time, both for sovereign and non-sovereign operations, shall benefit the developing member countries significantly," suggested Indian Finance Minister, Nirmala Sitharaman.
Meanwhile, Pakistan, whose Federal Minister of Economic Affairs Ahad Cheema was absent, underscored the need for greater aid effectiveness and a merit-based, transparent approach to development financing. The country warned that despite a macroeconomic turnaround driven by International Monetary Fund (IMF), World Bank and ADB-backed reforms, it remains vulnerable to debt burdens, climate shocks, and limited fiscal space.
"Fragile economies continue to grapple with daunting levels of debt servicing, shrinking trade possibilities, costly climate events and persistent poverty levels. Pakistan is no exception to these challenges," said Dr Kazim Niaz, Secretary for the Ministry of Economic Affairs and Pakistan's temporary-Governor for ADB.
"Resource availability is shrinking due to competing priorities. We strongly advocate renewed focus on synergies and institutional integrity in aid delivery," he said.
Acknowledging ADB as a trusted partner, Pakistan urged the bank to increase both financial and technical assistance, especially in finalising a long-term Country Partnership Framework tailored to national and sub-national development needs. Pakistan also pushed for greater private sector engagement and policy-based lending, alongside structured collaboration among multilateral partners like the World Bank. Voicing a similar call from many other countries including the United States and United Kingdom, Niaz said, "We expect ADB to step up its efforts to promote private sector activities and enhancing the footprint of private sector operations."
US-China standoff
Tensions also flared as the United States and China exchanged pointed remarks over the institution's priorities and lending policies.
The US representative, in a sharp address, welcomed the ADB President Masato Kanda but warned that the bank was straying from its core mission. The US urged the ADB to refocus on poverty reduction and private sector-led, job-rich growth, and to stop what it termed "coercive and opaque lending" practices by other creditors. Calling for greater efficiency, the US demanded a firmer implementation of the bank's graduation policy, explicitly naming the People's Republic of China. "Concrete steps must be taken to put China on a clear path to graduation," the US governor declared, arguing that higher-income countries with access to global financing no longer require ADB loans.
This mimics a call made just weeks ago by the US Treasury Secretary Scott Bessent, who had also urged the ADB president to take concrete steps towards ending loans to China and financing civilian nuclear energy.
In a strong rebuttal, China's representative slammed the US position, calling it "unacceptable" and contrary to ADB rules. China insisted that it remains the world's largest developing country and has not met the criteria for graduation under ADB's own assessments.
"China is not just a borrower but also a major contributor," the Chinese official said, highlighting the country's 30% share in recent global growth. Beijing urged the ADB to uphold multilateralism, resist politicisation, and continue financing climate goals and technological innovation.
ADB appoints new chair
Member countries' governors approved a sweeping set of recommendations, including key financial reports, budget updates, and the 2027 annual meeting schedule. Uzbekistan was elected Chair of the Board of Governors for 202526, with Norway and Thailand named Vice-Chairs.
Newly appointed ADB President Masato Kanda delivered his first annual address, warning of mounting challenges across Asiaincluding geopolitical tensions, debt burdens, and economic uncertaintythreatening hard-won development gains. He reaffirmed ADB's commitment to support vulnerable member countries with expanded financing, crisis-response tools, and policy coordination.
Kanda announced that recent capital management reforms have boosted the ADB's lending capacity by $100 billion over the next decade, allowing a 50% scale-up in operations.