Pakistan, JICA Agree to Expand Development Partnership

ISLAMABAD, Aug. 5: Pakistan and the Japan International Cooperation Agency (JICA) on Wednesday agreed to deepen their longstanding development partnership, with a renewed focus on infrastructure development, skills enhancement, digital connectivity and sustainable economic growth.

The understanding was reached during a meeting between Federal Minister for Economic Affairs Ahad Cheema and JICA President Dr. Tanaka Akihiko, who was accompanied by a high-level delegation.

During the meeting, both sides reviewed ongoing cooperation and discussed expanding collaboration in priority sectors to support Pakistan’s long-term development objectives.

Ahad Cheema appreciated JICA’s seven-decade partnership with Pakistan, noting that Japan’s official development assistance of nearly US$11.7 billion has made significant contributions to the country’s socio-economic development. He said Japanese assistance has supported key sectors including energy, transport infrastructure, industry, agriculture, water resources, health, education and security.

The minister invited JICA to consider co-financing the Main Line-1 (ML-1) Railway Project, highlighting that the Asian Development Bank (ADB) and other development partners are already supporting the strategic project. He said modernization of the ML-1 railway would strengthen Pakistan’s transport network, facilitate trade, improve industrial connectivity and promote sustainable economic growth.

Cheema also emphasized the need to invest in workforce skills development to strengthen Pakistan’s human capital and meet the changing demands of domestic and international labour markets.

Highlighting the growing importance of the digital economy, the minister sought JICA’s support for improving internet infrastructure in rural areas to enhance digital connectivity and create new opportunities for freelancers, entrepreneurs and e-commerce businesses.

He further requested JICA’s assistance in conducting feasibility studies for major development projects, stressing that high-quality project preparation is essential for attracting investment and ensuring successful implementation.

JICA President Dr. Tanaka Akihiko reaffirmed the agency’s support for Pakistan and said feasibility studies remain one of JICA’s core strengths. He assured Pakistan of continued cooperation in this area and said the proposed ML-1 project would receive due consideration for inclusion in JICA’s future project pipeline.

The minister also briefed the delegation on Pakistan’s economic reforms, reaffirming the government’s commitment to prudent macroeconomic management and structural reforms aimed at ensuring long-term economic stability. He said Pakistan has made substantial progress under the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), with all quantitative performance targets achieved, adding that the country’s economy is now firmly on the path to sustainable growth.

Dr. Tanaka welcomed Pakistan’s economic reform agenda, appreciated the government’s efforts to strengthen macroeconomic fundamentals and expressed confidence that enhanced cooperation would contribute to the country’s inclusive and sustainable development.