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ISLAMABAD, Aug 27 (APP):President of the Asian Development Bank (ADB) Masato Kanda on Wednesday called on the Minister for Economic Affairs Ahad Cheema.
During the meeting, the minister highlighted Pakistan’s efforts towards macroeconomic recovery and stabilization, noting the recent credit rating upgrades, said a news release. He apprised that headroom of $2 billion was agreed during the visit of former President ADB last year and requested to enhance the annual lending headroom in view of the improving macro-economic indicators.
The minister termed his visit as a reflection of the enduring and trusted partnership between Pakistan and ADB, which has played a pivotal role in supporting the country’s development priorities, over the years.
He congratulated ADB on the commencement of its new office building in Islamabad, marking another milestone in the Bank’s close and long-standing engagement with Pakistan.
The Secretary Railways made a presentation on ML-1 apprising the President and his team on scope and financing needs of the project. The minister expressed confidence that ADB will provide support for the ML-1 project in a phased manner keeping in view the significance for passenger transportation, trade, and regional connectivity.
He also stressed the need to reduce the timelines of processing of ML-1 project for early start of implementation. He urged the President to consider reforms in the framework of credit guarantees regarding the manner in which headroom is tapped.
He underscored the importance of ensuring additionality in climate finance, noting that re-purposing existing country allocations to address climate challenges and flood emergencies has only a minimal net impact while diverting resources away from other critical development sectors in urgent need.
ADB President extended heartfelt condolences on the lives lost and populations affected by the recent devastating monsoon rains and floods. He acknowledged Pakistan’s recent macroeconomic stabilization and reform efforts, reaffirming ADB’s commitment to be a long-term partner in the country’s development efforts.
He highlighted that Pakistan is a founding member of ADB and among its top five cumulative borrowers. He also appreciated the commendable efforts of the Economic Affairs Division (EAD) and ADB PRM team to achieve record disbursements of USD 2.2 billion in FY 2024–25.
The President ADB assured to look into the lending limits once the ratings further improve. Besides, he indicated ADB’s commitment to support ML-1 recognizing its strategic importance for trade, connectivity, and regional integration, and early commencement of Rohri- Karachi section.
The meeting concluded with the signing of an agreement between the Asian Development Bank and the Capital Development Authority (CDA), witnessed by President Asakawa and Minister Cheema. Under this agreement, CDA will provide land to ADB for the construction of a new office building in Islamabad, it added.