ISLAMABAD: Pakistan's planning minister called on the Asian Development Bank to establish a dedicated financing window for climate adaptation and resilience in highly vulnerable countries, saying existing allocations fall short of the challenges such nations face.
Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal made the proposal during a meeting with ADB President Masato Kanda on the sidelines of the 25th Carec Ministerial Conference in Ulaanbaatar, according to a statement released by his office.
Iqbal said global financial institutions must move beyond the traditional post-war reconstruction framework to address emerging challenges, particularly climate vulnerability.
Citing Pakistan's experience with devastating floods, he said climate-vulnerable countries that contribute minimally to global carbon emissions often face severe financing gaps when disasters strike. He proposed that the new ADB financing window use artificial intelligence and modern data systems to identify vulnerabilities and direct funds more effectively.
The minister also proposed a competitive regional financing window for Carec countries, allowing member states to jointly develop projects with regional impact and seek financing on a competitive basis.
Iqbal highlighted Pakistan's critical minerals potential, saying the country is moving from "pit to product" by promoting value addition and welcoming joint ventures in copper, antimony, chromite and rare earths. He proposed establishing a Carec Critical Minerals Investment and Value-Chain Platform and invited Carec businesses to participate in the Pakistan Minerals Investment Forum in Islamabad on Nov. 12–13, 2026. Pakistan, he said, could serve as a southern gateway connecting Central Asia's critical minerals to global markets.
Iqbal also stressed the strategic importance of the ML-1 railway modernization project and conveyed Prime Minister Shehbaz Sharif's message to expedite procedural formalities so groundbreaking can take place at the earliest.
Kanda assured the minister that the ADB was fully committed to ML-1 as a flagship project and would provide all possible support to move it forward.
The two sides agreed to explore joint studies on an export accelerator program to identify product and market gaps and support Pakistan's ambition of increasing exports to $100 billion by 2035. They also agreed to explore a study on better storage and utilization of floodwater.
Iqbal stressed the need to strengthen regional connectivity through integrated rail and road networks, particularly by linking Turkmenistan, Afghanistan and Pakistan, which he said could give Carec countries greater access to Gwadar Port.
Kanda acknowledged the minister's proposals and agreed to undertake the proposed studies. He said stability, policy continuity and sustained reforms would be important for Pakistan's development, while identifying infrastructure and human capital as key areas for ADB support.
Iqbal acknowledged the ADB's continued support under its Country Partnership Program and invited Kanda to attend the next Carec Ministerial Conference in Pakistan, as the country prepares to assume the Carec chairmanship next year.
Kanda extended the ADB's full support for Pakistan's hosting of the conference.
