Pakistan and the World Bank (WB) reaffirmed their commitment to advancing the country’s economic reform agenda, aiming for sustainable growth and development. The focus remains on fiscal stability, revenue generation, and investment-friendly policies under the 10-year Country Partnership Framework (CPF), which includes a $20 billion funding programme.
Key Focus Areas of the Meeting
Finance Minister Muhammad Aurangzeb met with a World Bank delegation in Islamabad to discuss Pakistan’s national growth and fiscal programme. Senior officials from the Ministry of Finance and the Federal Board of Revenue (FBR) also participated.
Discussions centered on:
- Investment financing for economic reforms
- Strategies to mobilize revenue
- Enhancing expenditure efficiency
- Boosting private sector participation
- Strengthening accountability in public services
The WB team shared progress on a comprehensive National Growth and Fiscal Programme, designed to address key economic and fiscal challenges.
Economic Reforms and Investment Goals
Pakistan’s reform strategy aims to unlock economic potential, create fiscal space, and improve governance. Some key objectives include:
- Encouraging private sector investments
- Strengthening public resource allocation for development
- Implementing performance-based reforms
- Ensuring macroeconomic stability at federal and provincial levels
The government seeks to align policy decisions with economic realities, ensuring a realistic revenue policy to drive sustainable growth.
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World Bank’s $20 Billion Support Plan
The World Bank’s Country Partnership Framework (FY26–FY35) is a long-term financial and technical support plan for Pakistan. Launched in January 2025, this programme targets six key sectors, including:
- Clean energy transition
- Climate resilience
- Poverty alleviation
- Private sector growth
- Infrastructure development
- Public financial management
With 106 ongoing projects worth $17 billion, the WB continues to play a vital role in Pakistan’s economic recovery.
Pakistan’s Economic Challenges and IMF Support
Despite international assistance, Pakistan remains under financial strain. The country is currently implementing a $7 billion bailout programme from the International Monetary Fund (IMF).
To secure financial stability, Pakistan must:
- Boost government revenues
- Reduce fiscal deficits
- Strengthen external financing
Much of Pakistan’s external funding comes from China and Gulf nations, but international lenders stress the need for deep-rooted economic reforms to ensure long-term stability.
A Unified Approach to Economic Growth
Finance Minister Aurangzeb emphasized the importance of a nationally coordinated fiscal strategy, aligning federal and provincial policies. He advocated for outcome-based reforms, directly linked to human development and socio-economic progress.
With Pakistan and the World Bank committed to long-term collaboration, the focus remains on economic resilience, investment-driven growth, and inclusive development.
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