ISLAMABAD: Pakistan and the Japan International Cooperation Agency (JICA) here on Wednesday agreed to deepen their development partnership, with a renewed focus on infrastructure development, skills enhancement, and economic growth.
The agreement was reached during a meeting of Federal Minister for Economic Affairs, Ahad Cheema with President of the Japan International Cooperation Agency (JICA), Dr. Tanaka Akihiko, who was accompanied by a high-level delegation.
They also discussed expanding cooperation in priority sectors to support Pakistan’s long-term development objectives, according to press release issued by Economic Affairs Ministry.
Speaking on the occasion, the minister appreciated JICA’s longstanding partnership with Pakistan and acknowledged its significant contribution to the country’s socio-economic development over the past seven decades.
He noted that Japan’s official development assistance to Pakistan, amounting to approximately US$11.7 billion, has played a vital role in advancing key sectors, including energy, transport infrastructure, industry, agriculture, water resources, health, education, and security.
He 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 initiative.
He emphasized that the modernization of ML-1 would strengthen Pakistan’s transportation network, facilitate trade, improve industrial connectivity, and contribute significantly to sustainable economic growth.
Cheema emphasized the importance of investing in skilled workforce development to enhance Pakistan’s human capital and meet the evolving demands of domestic and international labour markets.
Highlighting the growing importance of the digital economy, the Minister sought JICA’s support for upgrading internet infrastructure in rural areas of Pakistan to improve digital connectivity and create greater opportunities for freelancers, entrepreneurs, and e-commerce businesses.
The Minister further requested JICA’s assistance in conducting feasibility studies for major development projects, noting that high-quality project preparation is essential for attracting investment and ensuring successful implementation. The JICA President reaffirmed that feasibility studies are among JICA’s core strengths and assured the Minister of the agency’s support in assisting the government in this area.
The Minister reaffirmed the government’s commitment to prudent macroeconomic management and comprehensive structural reforms aimed at ensuring long-term economic stability and sustainable growth. He noted that following the successful completion of the IMF Stand-By Arrangement (SBA), Pakistan’s engagement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) has progressed substantially, with the country meeting all quantitative performance criteria.
He added that the economy is now firmly on a path of consolidation, supported by sustained reforms and improving macroeconomic indicators.
Speaking on the occasion, JICA President Dr. Tanaka Akihiko acknowledged the importance of the proposed project and said the agency would give due consideration to including the initiative in its future project pipeline.
He expressed support for the proposal, noting its potential to contribute to inclusive economic development.
Dr. Tanaka also welcomed the government of Pakistan’s economic reform agenda and appreciated its efforts to strengthen the country’s economic fundamentals.
