Govt declares ML-1 'national priority'

ADB proposes body for railways reforms, private sector portfolio to be expanded

ISLAMABAD:

Pakistan and the Asian Development Bank (ADB) have agreed to expedite the implementation of development projects and enhance private-sector participation, while the ADB has also proposed the establishment of a joint working group for institutional reforms in Pakistan Railways, according to a statement issued on Wednesday.

The understanding was reached during an important meeting between Federal Minister for Economic Affairs Ahad Cheema and ADB Vice President Yingming Yang, during which detailed discussions took place on institutional reforms in Pakistan Railways, the ML-1 project, private-sector investment, economic reforms and various development initiatives.

The ADB vice president proposed the formation of a joint working group for institutional reforms in Pakistan Railways, and both sides agreed to immediately initiate the process. The joint working group will provide an effective platform to advance institutional reforms in the railway sector.

Cheema reiterated that ML-1 is a flagship project of national significance and a key priority for Pakistan. The ADB vice president welcomed the strong progress and momentum generated by the government on the ML-1 project and said that close cooperation with the government would continue to ensure the early commencement of practical work.

Cheema said that the ADB has been a reliable and long-standing development partner of Pakistan for the past six decades. He welcomed the approval of ADB's Country Partnership Strategy 2026-2030, adding that financial, structural and governance reforms over the past three to four years have restored confidence in the economy. These reforms have laid a strong foundation for macroeconomic stability and sustainable economic growth, while improvements in Pakistan's credit rating reflect the impact of these reforms and overall economic stabilisation.

The ADB vice president also welcomed the improvement in Pakistan's sovereign credit rating and macroeconomic stability.

The federal minister emphasised the need for the ADB to increase private-sector-related activities and investment in Pakistan, to which the ADB vice president responded that the private-sector portfolio in Pakistan would be further expanded. Cheema added that privatisation is a key government priority, and work is ongoing on an effective public-private partnership framework and a strong pipeline of viable projects.

The ADB vice president appreciated the government's project readiness reforms and described as commendable the steps taken towards modern financing instruments, policy-based guarantees and guarantees for the issuance of Panda bonds.

The meeting also discussed the promotion of small and medium enterprises, export-led growth and targeted skills development programmes. Discussions were also held on strengthening power transmission and distribution infrastructure, water and food security, and technical assistance programmes.

Pakistan and the ADB agreed to accelerate the implementation of development projects and enhance private-sector participation. Both sides also agreed to maintain close coordination to translate their strong partnership into tangible economic outcomes.