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ADB Congratulates Pakistan and Signals Shift to Private‑Sector Support

It could unlock non‑sovereign funding for private firms, boost SME export credit insurance, deepen public‑private partnerships, preserve fiscal prudence.

Overview

  • On Wednesday ADB Vice President Yingming Yang formally praised Pakistan’s macroeconomic stabilisation and sovereign rating gains during a meeting with Finance Minister Muhammad Aurangzeb.
  • Yang told officials the bank is ready to expand support beyond sovereign loans into private‑sector operations, SME value‑chain financing and public‑private partnerships.
  • The government is shifting policy from stabilisation toward export‑led, private‑sector growth and has recently strengthened export finance and SME risk‑sharing arrangements to improve access to export credit insurance.
  • Aurangzeb also met Deutsche Bank’s regional CEO to court deeper bank engagement and to push for greater mobilisation of domestic and private capital through co‑financing and innovative instruments.
  • If ADB follows through with non‑sovereign financing and technical support for pensions, insurance and project readiness, Pakistani firms could gain cheaper credit and wider export access while the state works to keep fiscal discipline.