Cheema seeks ADB action on ML-1

Govt also secures IsDB backing with $5.6b indicative envelope under 2026-2030 strategy

BANGKOK:

Pakistan has sought expanded private-sector lending from the Asian Development Bank (ADB) and faster processing of the ML-1 Railway Upgradation Project, with ADB President Masato Kanda committing to fast-track the bank's institutional processes for the flagship scheme.

Federal Minister for Economic Affairs and Pakistan's Governor to the ADB Ahad Khan Cheema raised the requests at a meeting with Kanda on the sidelines of the 2026 Annual Meetings in Bangkok, according to a statement issued on Thursday. Cheema congratulated Kanda on his re-election for a second term and welcomed approval of the ADB Country Partnership Strategy (CPS) 2026-2030. Emphasising private sector-led growth, he called for expanding ADB's non-sovereign operations in Pakistan and a stronger permanent on-ground presence to facilitate investment transactions and develop a pipeline of public-private partnership projects.

The delegation highlighted the importance of affordable development financing, greater flexibility in ADB's lending framework, expanded private-sector operations and sustained support for Pakistan's priorities. Cheema appreciated ADB's lead role on ML-1 and underlined the need for early completion of the feasibility study and commencement of procurement.

In a separate meeting with Islamic Development Bank (IsDB) Group Chairman Dr Muhammad Sulaiman Al Jasser, Cheema discussed accelerating cooperation under Pakistan's Member Country Partnership Strategy (MCPS) 2026-2030, which envisages $5.6 billion in indicative IsDB Group financing.

He stressed translating the envelope into a concrete pipeline of well-prepared projects with clear timelines for approvals, disbursements and implementation. He appreciated IsDB's $475 million financing for the M-6 Sukkur-Hyderabad Motorway and welcomed continued support for polio eradication, including recent approval of $100 million for Phase V. Seeking enhanced IsDB support for ML-1, he urged close coordination with ADB and other co-financiers. He called for a whole-of-Group approach involving IsDB, the International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Development of the Private Sector (ICD), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the IsDB Institute to expand export finance, small and medium enterprises (SMEs), infrastructure, public-private partnerships and energy transition.

Cheema highlighted mobilisation of over $1 billion in trade financing through ITFC during FY2025-26. He sought more competitive terms, reflecting Pakistan's improving macroeconomic and credit profile.