Pakistan can achieve stronger economic growth in coming years: ADB

ISLAMABAD: Vice President of Asian Development Bank (ADB), Wencai Zhang Thursday said that keeping in view the pace of economic development in Pakistan during recent years, the country could achieve very strong economic growth in next few years.

"I am very much impressed by the Pakistan government's efforts in stabilizing the macroeconomic indicators which have showed encouraging performance during recent years", the ADB Vice President told media who is currently on a three-day visit to Pakistan.

He said the country needed a higher economic growth rate of 7 per cent, which was quite achievable in next few years.

He hoped that the government would further boost its efforts in deep structural reforms to further consolidate the economic gains of the country.

Mr Zhang said that political stability was very important for the economic development in the country.

"We want to see a stable political and economic situation in the country as it is very important for reforms and development", he remarked.

He said the ADB was confident that owing to great potential in Pakistan, the country would move from current lower middle level growth to higher level growth in coming days.

Mr Zhang said, during his visit, he met with Chief Minister Punjab Shahbaz Sharif, Finance minister Ishaq Dar, Minister for Planning, Ahsan Iqbal and Minister for Water and Power, Khawaja Asif and discussed with them the current progress of ADB's funded projects.

He said he was very impressed by the Punjab Vocation Education Training Programme to produce skilled labour in the country.

"So far we have been involved heavily in infrastructure and energy sectors, however, we are looking forward to invest in social sectors including health and education sectors, water resource management and capacity building in various sectors to ensure inclusive growth and balanced development of the country", he added.

The Vice President said the ADB believed in regional connectivity, therefore it wanted to support the regional economic forums and economic corridors including China Pakistan Economic Corridor (CPEC) which was so important for Pakistan's development.

"Besides supporting infrastructure, energy and transport sectors, we also support policy and structured level reforms, corporate reforms and capacity building at center and local government level", he remarked.

The ADB, he said was also interested in financing the railways sector. "Regional connectivity through railway line was the initial plan of the Bank, however, the Pakistan government was more interested to receive funding from China under CPEC to link Pakistan with China and other neighboring countries through railway link".

However, he said the ADB would support other small railways projects including the construction of subsidiary railway line along the main line.

He said the ADB was also supporting clean and renewable energy projects, such as solar, wind and small and medium hydro power projects.

To a question, Mr Zhang said annual funding from ADB to Pakistan could vary depending upon the readiness of projects from $1 billion to 1.7 billion, however, he hoped that in next few years, the funding could cross $2 billion.

ADB's Country Director for Pakistan Xiaohong Yang and former country director Werner Liepach were also present on the occasion.