Federal Minister for Economic Affairs Ahad Cheema and Asian Development Bank (ADB) Vice President Yingming Yang have agreed to promptly establish a joint working group aimed at advancing institutional reforms within Pakistan Railways. This initiative was proposed during a meeting between the two officials to enhance collaboration on the project.
Minister Cheema emphasized that this forum would serve as an effective platform to monitor and expedite progress on the institutional reforms of Pakistan Railways. He highlighted the Main Line-1 (ML-1) railway project as a flagship national initiative, underscoring its significance as one of Pakistan’s top priorities.
Vice President Yang acknowledged the strong momentum generated by the Pakistani government regarding the ML-1 project and assured continued support from the ADB to facilitate the commencement of practical work at the earliest opportunity.
Cheema noted the ADB’s role as a trusted development partner for Pakistan over the past six decades and welcomed the recent approval of the bank’s Country Partnership Strategy 2026-2030 for Pakistan. He also pointed out that fiscal, structural, and governance reforms implemented over the last three to four years have restored confidence in the economy, laying a solid foundation for macroeconomic stability and sustainable growth.
The minister further remarked that the improvement in Pakistan’s credit rating reflects the government’s reform efforts and enhanced economic stability. Yang welcomed this progress, particularly the sovereign credit rating upgrade and strides toward macroeconomic stability.
Cheema encouraged the ADB to expand its activities and investments in Pakistan’s private sector. In response, Yang confirmed the bank’s intention to further grow its private-sector portfolio within the country.
Privatization remains a key focus for the government, with ongoing efforts to develop an effective public-private partnership framework and a robust pipeline of viable projects. Yang praised the government’s project-readiness reforms and the introduction of modern financing mechanisms, including policy-based guarantees and Panda bond issuance guarantees.
Additionally, discussions covered the promotion of small and medium-sized enterprises (SMEs), export-led growth, and targeted skills development programs. Both parties exchanged views on enhancing electricity transmission and distribution infrastructure, as well as addressing water and food security challenges through technical assistance programs.
In a significant development, both sides agreed to accelerate the implementation of development projects and increase private-sector participation. They committed to maintaining close coordination to translate the strong Pakistan-ADB partnership into tangible economic outcomes.
