ADB praises Pakistan's economic progress, backs shift towards private-sector-led growth

The Asian Development Bank commended Pakistan's macro stability gains and said it could widen its backing for private-sector development, SMEs and export-led growth, the Ministry of Finance announced on Wednesday. The Express Tribune reported that Yingming Yang, the bank's Vice President for South, Central and West Asia, met Finance Minister Muhammad Aurangzeb and applauded the government for better public finances, external accounts and general economic steadiness. The bank also described positive developments in Pakistan's sovereign credit ratings as signs of ongoing reform and stronger fundamentals.

Aurangzeb said the government's focus is moving away from stabilisation toward inclusive, long-term growth driven by investment, exports, jobs and private participation. He welcomed the bank's broader role beyond sovereign lending, including private-sector deals and public-private partnerships. Both sides reviewed SME financing and the integration of small firms into global supply chains, while Yang pledged further help on key reform priorities.

Aurangzeb also urged greater use of domestic and private capital, including co-financing structures, and pointed to infrastructure, clean energy and climate resilience as areas for collaboration. Pension reforms and insurance changes were also discussed, and the meeting came days after two export financing agreements, one signed on Aug 31. One was a reinsurance partnership between Pak EXIM and ICIEC, while the other created a roughly Rs3 billion risk pool for SMEs through the Export Development Fund and Pak EXIM.