KARACHI: Pakistan and the Asian Development Bank (ADB) on Monday reaffirmed their strategic partnership to accelerate IMF-backed economic reforms, as Islamabad seeks to sustain macroeconomic stabilization and deepen private-sector-led growth.

The commitment came during a meeting between Finance Minister Muhammad Aurangzeb and a senior ADB delegation in Islamabad, where both sides reviewed Pakistan’s reform trajectory under the International Monetary Fund’s Extended Fund Facility (EFF) and discussed ways to improve development impact and project execution.

Pakistan has been pursuing wide-ranging fiscal, energy and structural reforms under the $7 billion IMF loan program after years of balance-of-payments stress and repeated stabilization cycles. While recent reviews have pointed to improved macroeconomic indicators, the government has stressed that sustained growth will depend on translating policy commitments into implementation, particularly in taxation, state-owned enterprises and the energy sector.

“ADB representatives expressed appreciation for Pakistan’s reform progress under the IMF program and confirmed ADB’s readiness to provide further budget support aligned with the EFF,” the finance ministry said in a statement. 

“They outlined future areas of engagement, including insurance sector reforms, public-private partnerships, pension reforms, and continued support for climate resilience and social sector development.”

Aurangzeb told the delegation that the government was focused on improving project readiness and execution, noting that delays had historically weakened the impact of development spending, especially in social sectors and climate-related initiatives. He said visible progress on privatization and energy sector restructuring was essential to building investor confidence and sustaining reform momentum.

The finance minister highlighted recent steps, including the privatization of a small bank, renewed interest in strategic transactions and ongoing work to restructure electricity distribution companies. He also pointed to encouraging trends in exports, remittances and services, particularly information technology, while cautioning that growth needed to remain balanced and sustainable.

According to the statement, ADB officials reiterated the bank’s emphasis on results-based engagement and faster project implementation, saying streamlined processes were critical for timely disbursements and measurable outcomes. The delegation also flagged expanded support for private-sector development through guarantees, public-private partnerships and potential infrastructure transactions.