ADB Reaffirms Commitment to Fiscal Space Generation
The Asian Development Bank (ADB) reaffirmed its commitment to supporting Pakistan’s structural reforms, fiscal space generation, and efforts to stabilize the economy. This assurance was made during a meeting between a delegation of ADB Executive Directors and Alternate Executive Directors and the Federal Minister for Economic Affairs, Ahad Khan Cheema. The delegation’s visit, which took place from October 6 to 12, 2024, aimed to discuss Pakistan’s development priorities and macroeconomic reforms.
Strengthening Collaboration
The visit underscores the strong collaboration between the ADB and Pakistan, focusing on achieving sustainable development goals and enhancing economic stability. During the meeting, Minister Cheema emphasized the long-standing partnership between Pakistan and the ADB, a relationship that has been recently bolstered by ADB President Masatsugu Asakawa‘s visit to the country. He reiterated the government’s commitment to a comprehensive reform agenda aimed at restoring macroeconomic stability and fostering sustainable growth.
Key Areas of Reform
Minister Cheema outlined several key areas of reform essential for Pakistan’s economic recovery. These include the digitization of the tax system to improve revenue generation, enhancements in the energy sector, and the restructuring of state-owned enterprises (SOEs). He noted that these reforms have already begun to yield positive results, such as a more stable currency, reduced inflation, and a stronger fiscal position.
Priorities for ADB Support
In addition, Cheema highlighted Pakistan’s priorities for ADB support in critical sectors, including climate action, infrastructure development, and social uplift. These areas are crucial for ensuring sustainable growth and improving the overall well-being of the Pakistani population.
