The Asian Development Bank (ADB) has expressed willingness to finance the Mainline-1 (ML-1) railway project from Karachi to Peshawar, in collaboration with other donors, but has stressed that Islamabad must undertake comprehensive reforms in the railway sector. This message was conveyed during meetings with Minister for Finance Muhammad Aurangzeb and Minister for Economic Affairs Ahad Cheema on Wednesday. The finance minister held a meeting with ADB Vice President (South, Central and West Asia) Yingming Yang, who called him along with his team.

The discussion covered Pakistan-ADB cooperation, structural reforms, investment, private-sector development and access to finance. Yang reaffirmed ADB's commitment to supporting Pakistan's development priorities and noted the strong alignment between the bank's strategic priorities and the government's reform agenda. He expressed readiness to further support private-sector development, SME value chain financing and other sectoral priorities.

The ADB vice president highlighted the importance of maintaining fiscal prudence while supporting Pakistan's transition towards sustainable growth. The discussion also covered pension reforms and institutional strengthening. Both sides discussed ongoing and pipeline policy-based operations, recognising their role in supporting key structural reforms and long-term economic transformation.

Later, the ADB vice president also held a detailed meeting with the minister for economic affairs.