Milan:

The Asian Development Bank (ADB) has expressed concern about rising tensions between Pakistan and India and warned that instability in the region could hinder economic growth and disproportionately influence the poor and vulnerable.

“We hope for peaceful decisions in all regions as the conflict ultimately harms the most vulnerable populations,” said ADB president Masato Kanda in response to a question from Pakistani journalist Aamir Ghauri, during a press Briefing at ADB’s annual Milan meeting.

While he avoided direct comment on political conflicts, Kanda emphasized that ADB remains obliged to support the region through financial cooperation.

The statement comes in the midst of India’s decision to ban imports of goods derived from or transit through Pakistan, as well as prohibit Pakistani ships from docking in its ports. The move follows a deadly attack on tourists in the disputed Kashmir region, which has escalated tension between the two nuclear armed neighbors.

“ADB has supported peace and stability through financial cooperation, and we will continue to do so,” he said.

Answer a question from Express Pakinomist about the possibility of a reduced interest rate for Pakistan after its qualification for an international Monetary Fund (IMF) program, he said, “We maintain an independent research team that evaluates all available data. We have a very good relationship with international organizations, but we use our own analysis.”

When Kanda was asked about the reduced growth forecast of Asia in 2026, Kanda ADB’s modest projection of 4.7% growth to get in Asia recognized, which attributes the cautious prospects of trade disorders and uncertainty in the financial markets. “There may be more influence not only from trade falls but also instability in the financial markets. It is not clear at the moment,” he said.

On broader global challenges, Kanda described the current environment as possibly “the most difficult global environment since 1944–45,” as nationalism and trade fragmentation, which arises decades of progress driven by globalization. He urged to reform the international economic architecture to better serve developing countries and emphasize the need to “upgrade the regime in favor of poor and vulnerable countries.”

From New Delhi, a journalist from Mint asked what India and other new economies have to do to catch up with developed nations by 2050. “Reforms to increase domestic demand, reduce inequality and open the economy are important,” the ADB president said. He emphasized the importance of the development of the private sector for spuring innovation and job creation, while calling on governments to invest in high quality infrastructure and human capital, including vocational education.

On the question of migration and border control in Western economies and its effects on transfers noted Kanda, “Transfers are sometimes the largest source of foreign currency for many countries. This has a huge impact on the poor and vulnerable.” He added that administered migration can in principle be a “win-win” for global productivity if handled properly, though it remains a politically sensitive topic.

In response to an Economic Times query about de-dollarization, the ADB chief said the US dollar remains dominant due to institutional trust and liquidity, especially Federal Reserve. “Although its share has fallen slightly in reserves, the dollar remains resistant,” he said, also calling on countries to maintain confidence in their monetary policy and consider the development of digital currencies.

From Bangladesh, Financial Express asked about strengthening regional trade in Asia. Kanda emphasized the need for trade harmonization, digitization and customs modernization to increase interregional trade. “This crisis is an opportunity to diversify exports and elaborate on trade agreements,” he said.

He concluded by confirming ADB’s commitment to South Asia’s development goals through inclusive growth, collaboration and strategic investments.

$ 26b Boost for Asia-Pacific Food Security in 2030

The ADB president also announced a sweeping expansion of $ 26 billion of his food security program throughout Asia and the Pacific, which brought the overall planned investments to $ 40 billion by 2030.

When asked why ADB increases its financing of food at this time, as more and more countries find greater value for their respective economies through bilateral and private sectors, Kanda said the move is responding to “one of the most serious issues for the population” – rising food prices, growing hunger and the risk of job losses. “People are forced to choose between a meal for their families or transport to their jobs,” he said.

Kanda, who took over as the 11th president of ADB in February this year, said the initiative will channel $ 18.5 billion through governments and $ 7.5 billion through the private sector. “Food access is critical in these uncertain times,” emphasized Kanda. “Agriculture and food sector employ 40% of the region’s workforce. Our support will help create job creation and increase the growth of Agribusiness.”

He also warned that Asia’s current food systems are breaking down the environment. “Food occupies 70% of the global water, 50% of habitable soil and causes 80% of loss of biodiversity,” he said. “We have to change how we produce food for a healthy planet – and we can’t wait.”

ADBS extended support includes digital tech for farmers, land recovery and a new $ 150 million natural capital fund to support climate-smart agriculture.

US tariffs and Asian economies

The ADB president also discussed the challenges that US tariffs presented under the Trump administration, calling on Asian economies to transform these uncertainties into opportunities. “Asian countries are more exposed to shock, but they are stronger than before,” he said. Kanda pointed out the need for economic policies to “protect stability” and improve “regional connection.”