ISLAMABAD: Asian Development Bank (ADB) President Masato Kanda has reaffirmed the bank’s commitment to Pakistan’s Main Line-1 (ML-1) railway modernisation project, saying the ADB would provide possible financial support to advance the long-delayed initiative.
Kanda gave the assurance during a meeting with Planning and Development Minister Ahsan Iqbal on the sidelines of the 25th CAREC Ministerial Conference in Ulaanbaatar, Mongolia.
The two sides discussed regional connectivity, exports, climate financing and critical minerals.
Iqbal conveyed Prime Minister Shehbaz Sharif’s message that procedural formalities for ML-1 should be expedited to enable groundbreaking at the earliest.
READ MORE: NA body informed: Pakistan seeks USD2bn ADB financing for ML-1 project
Describing ML-1 as strategically important for Pakistan’s transport infrastructure, the minister stressed the need to strengthen regional connectivity through integrated rail and road networks.
He proposed improving links among Turkmenistan, Afghanistan and Pakistan to provide CAREC member states with greater access to Gwadar Port.
The two sides also agreed to explore an export accelerator programme to identify gaps in products and markets and support Pakistan’s target of increasing exports to USD 100 billion by 2035.
A separate study on improving the storage and utilisation of floodwater was also proposed.
Kanda agreed to undertake the proposed studies and said stability, policy continuity and sustained reforms would be important for Pakistan’s development.
He said infrastructure and human capital were among the areas where the ADB was prioritising support.
The ADB president also stressed the importance of education, science, innovation and emerging technologies for Pakistan’s future economic growth and acknowledged Iqbal’s contribution to the country’s development and planning.
Iqbal thanked the ADB for its continued assistance under its Country Partnership Programme and invited Kanda to attend the next CAREC Ministerial Conference in Pakistan, as the country is due to assume the CAREC chairmanship next year.
Kanda assured him of the ADB’s support for Pakistan’s hosting of the conference.
The planning minister called for an evolution in the role of international financial institutions, saying they needed to move beyond the traditional post-war reconstruction model to address newer challenges, particularly climate vulnerability.
Citing Pakistan’s experience with devastating floods, he said countries that contributed relatively little to global carbon emissions could nevertheless face major financing shortfalls following climate-related disasters.
He proposed that the ADB establish a new financing window using artificial intelligence and modern data systems to identify vulnerabilities and direct funds more effectively.
Iqbal also proposed a competitive regional financing facility for CAREC countries, under which member states could jointly develop projects with regional impact and compete for financing.
Pakistan’s potential in critical minerals was also discussed.
Iqbal said the country was seeking to move from “pit to product” by encouraging value addition and joint ventures in minerals including copper, antimony, chromite and rare earth elements.
He proposed the creation of a CAREC Critical Minerals Investment and Value-Chain Platform and invited businesses from CAREC countries to attend the Pakistan Minerals Investment Forum in Islamabad on November 12 and 13, 2026.
The proposed platform, he added, could help connect Central Asia’s critical-mineral resources with international markets through Pakistan as a potential southern gateway.
Copyright Business Recorder, 2026
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