In a major step towards strengthening Pakistan’s development, Prime Minister Shehbaz Sharif recently met with the Executive Directors of the World Bank, who arrived in Pakistan after two decades to review the implementation of a significant $40 billion funding agreement. This visit marks an important milestone in the partnership between the World Bank and Pakistan, which has spanned over 70 years.
Welcoming the World Bank delegation to Pakistan, PM Shehbaz Sharif emphasized the long-standing relationship between the two parties and the critical role the World Bank has played in the country’s development. “The partnership between the World Bank and Pakistan spans the past seven decades,” the Prime Minister said. Over the years, the World Bank has been instrumental in funding several key projects in Pakistan, contributing significantly to national development and reconstruction.
The centerpiece of the discussion was the new $40 billion funding commitment under the World Bank’s recently launched Country Partnership Framework (CPF) for Pakistan. PM Shehbaz highlighted that this framework would open a new chapter of development in the country. “Under the World Bank’s recent Country Partnership Framework, an investment of $40 billion will be made in Pakistan, which is a welcome development,” he said.
Half of this funding, amounting to $20 billion, will be channeled into various social development projects in Pakistan, with a focus on sectors such as health, education, and youth development. This investment is expected to have a transformative impact on the country’s social fabric, enhancing the quality of life for millions of Pakistanis.
Additionally, the remaining $20 billion will be directed towards Pakistan’s private sector through the World Bank’s International Finance Corporation (IFC). This investment is expected to drive significant growth in the private sector, accelerating economic activity and creating jobs. “The economic wheel of Pakistan will turn faster with the investment of $20 billion in the private sector under the International Finance Corporation (IFC),” PM Shehbaz remarked, underscoring the potential benefits of this financial commitment.
The Prime Minister also expressed gratitude to the World Bank for its confidence in the government’s economic policies. “I am grateful for the World Bank’s confidence in the government’s policies,” he said, highlighting the government’s ongoing efforts to implement key reforms in sectors like taxation, energy, and digitalization.
One of the key reforms discussed during the meeting was the government’s fast-tracked work on digitizing the Federal Board of Revenue (FBR). PM Shehbaz informed the delegation that these efforts are aimed at controlling inflation and improving fiscal transparency. In addition, reforms in the energy sector are focused on ensuring a continuous power supply and reducing the deficit, which has been a longstanding issue in Pakistan.
The World Bank delegation expressed appreciation for the government’s ongoing reform initiatives, noting that these efforts are yielding positive results. The delegation commended Pakistan’s reforms in energy, industry, exports, privatization, and revenue generation, all of which are helping to drive the country’s economic recovery.
The visit included nine Executive Directors of the World Bank, each overseeing different portfolios within the organization. During their time in Pakistan, the delegation engaged in discussions around ongoing and future economic development projects, as well as potential investments in critical sectors such as infrastructure, energy, and education.
In line with this, the IFC, which is the World Bank’s financial arm, also announced plans to boost equity investments and target large-scale infrastructure projects in Pakistan. In an interview with Reuters, IFC Managing Director Makhtar Diop revealed that these efforts could unlock up to $2 billion annually over the next decade. Diop emphasized the importance of this investment for Pakistan’s development, particularly in sectors such as international airports, energy, water, and ports, which are essential for long-term economic growth.
As the discussions continue, the $40 billion agreement represents a significant opportunity for Pakistan to accelerate its economic development and enhance the lives of its citizens. Through strategic investments and reforms, Pakistan aims to position itself as a resilient emerging market with sustainable growth.