The Asian Development Bank on Wednesday launched its 2026–30 Country Partnership Strategy (CPS2026-30) for Pakistan, outlining plans to provide about $10 billion in financing over five years to support sustainable and inclusive growth.
The strategy prioritizes three main areas: boosting private sector development, promoting inclusion and empowerment, and enhancing resilience and sustainability. Crosscutting themes include governance reform, institutional strengthening, gender equality, digital transformation, and regional integration.
Emma Fan, ADB Country Director for Pakistan, said the CPS addresses structural challenges while promoting long-term growth that benefits the poor and vulnerable. “It advances strategic investments and reforms across key sectors to stimulate economic growth and create jobs,” she noted.
Private sector-led development is central to the plan. The CPS aims to reduce regulatory and compliance burdens, improve infrastructure, expand access to finance, strengthen public–private partnerships, and enhance private sector operations. It also identifies transformative opportunities in critical minerals, energy security and clean energy, railways and multimodal connectivity, agriculture value chains, integrated water resource management, and skills development.
Inclusion and empowerment initiatives will focus on human capital development, access to quality social services, and women’s economic participation. Resilience and sustainability measures will target disaster risk management, climate adaptation, flood control, agriculture and food security, and air quality improvements.
ADB highlighted Pakistan’s demographics and resource advantages: an estimated population of 240.5 million in 2025, with 66 percent under 30, abundant arable land (47 percent), critical mineral deposits, and a growing digital economy. Strategic location and ongoing structural reforms provide additional opportunities for export- and investment-led growth.
The CPS also points to key structural challenges, including narrow production and export bases, a difficult business environment, imbalanced public finances, energy inefficiencies, gaps in rail and urban infrastructure, limited social services, governance weaknesses, and vulnerability to climate change. The strategy emphasizes carefully sequenced reforms and targeted investments to convert these challenges into long-term development gains.
Recent macroeconomic improvements are noted: GDP growth rose to 3.1 percent in FY2025 from a 0.2 percent contraction in FY2023, average inflation fell to 4.5 percent from 23.4 percent in FY2024, and the current account recorded a 0.5 percent surplus — the first since FY2011.
ADB confirmed it will deploy integrated solutions—including policy reforms, sovereign and non-sovereign financing, technical assistance, and knowledge support—to help Pakistan leverage its demographic and resource potential, strengthen the private sector, and ensure sustainable and inclusive growth.
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