ADB offers financing support for ML-1 railway project, seeks comprehensive sector reforms

Profit reported that the Asian Development Bank has signalled readiness to co-finance the Main Line-1 railway between Karachi and Peshawar, working with other development partners. The lender also called for wide-ranging changes to how the railway sector operates. The signal came during talks on Wednesday between an ADB delegation and Finance Minister Muhammad Aurangzeb and Economic Affairs Minister Ahad Cheema.

ADB Vice President Yingming Yang led the bank's side in a session with Aurangzeb that covered bilateral ties, economic restructuring, investment, private enterprise growth and credit access. Yang said the institution's aims lined up with the government's reform plans and offered wider help for private companies and small and medium enterprise supply chains. Both parties stressed prudent public finances as Pakistan pursues durable growth, and pension changes and stronger institutions were also on the agenda.

Later, Yang met Economic Affairs Minister Ahad Cheema in more detail, and the talks centred on possible ADB support for ML-1 and the broader changes the railway sector requires. Officials also went over ongoing and planned policy-based lending, which the sides see as a route to longer-term economic change.