In a significant move aimed at boosting Pakistan’s long-term economic stability, the World Bank has unveiled its comprehensive National Growth and Fiscal Program as part of the 10-year Country Partnership Framework (CPF). This initiative, which includes a substantial $20 billion financial commitment, aims to address critical development challenges and enhance the country’s economic prospects over the next decade.
The World Bank’s team shared the details of this program during a follow-up meeting with the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and his team at the Finance Division. This meeting, which took place on March 18, 2025, focused on the key pillars of the National Growth and Fiscal Program, covering crucial areas such as health, education, climate resilience, and sustainable economic growth.
The program is designed to tackle a broad spectrum of issues related to fiscal reforms, with a focus on unlocking the constraints that hinder inclusive and sustainable growth. One of the primary goals is to mobilize revenues, improve the quality of expenditures, and enhance the efficiency and accountability of public services. By addressing these areas, the World Bank aims to lay the foundation for more productive private investment while ensuring that public resources are better allocated to foster inclusive development.
A central aspect of the program is the development of fiscal strategies that are in line with Pakistan’s long-term growth objectives. The World Bank’s efforts include an emphasis on improving governance and ensuring that fiscal policies are well-aligned with the country’s socio-economic development goals. The goal is to create a conducive environment for private sector growth while ensuring that public sector investments contribute to the well-being of all citizens, particularly the marginalized sections of society.
Minister Aurangzeb, during the meeting, stressed the importance of a comprehensive and integrated approach to fiscal, trade, and private sector reforms. He emphasized that these reforms must span both the federal and provincial levels of governance to ensure their effectiveness. The finance minister also highlighted the need for outcome-based and performance-based indicators that are directly linked to human development and socio-economic progress. These indicators will be used to monitor and measure the impact of the reforms on the country’s growth trajectory.
In addition to the fiscal program, the World Bank briefed Minister Aurangzeb on its ongoing data analysis of policy proposals and recommendations. These recommendations were gathered from a wide range of stakeholders, including chambers of commerce, trade bodies, and various associations, during pre-budget consultations. This collaborative approach is intended to support the government’s early budget process, which was moved forward to January 2025 to ensure that revenue policies are based on sound economic principles and are reflective of the country’s true needs.
The finance minister reiterated the importance of a nationally coordinated approach to reform, highlighting the National Fiscal Pact as an example of how cooperation between federal and provincial governments can lead to macroeconomic stability. He stressed that a unified approach would be the cornerstone of Pakistan’s aspirations for inclusive and sustainable economic growth.
Both the World Bank and Pakistan’s Ministry of Finance committed to continued collaboration in advancing this ambitious reform agenda. The goal is to drive positive change for Pakistan’s economy, ensure the country’s macroeconomic stability, and ultimately improve the standard of living for all citizens.
In conclusion, the National Growth and Fiscal Program marks a major step forward in Pakistan’s efforts to reform its economic landscape, with the World Bank’s backing providing essential financial and technical support. The success of this program will depend on strong governance, strategic implementation, and continued collaboration between local and international stakeholders.