The World Bank has proposed developing new export-finance products for the Export-Import Bank of Pakistan (EXIM Bank) to support additional trade flows, as the government and the international lender reviewed a wide range of economic reforms aimed at strengthening investment, exports, employment and private-sector activity. The proposal was discussed during a meeting between Federal Minister for Finance and Revenue Muhammad Aurangzeb and a World Bank delegation led by Bolormaa Amgaabazar, Country Director. The meeting covered progress under the ongoing economic reform partnership and reviewed implementation priorities across growth, jobs, fiscal management, revenue mobilisation, capital-market development, trade, investment and institutional reforms.
The meeting also examined the World Bank’s support for Pakistan’s broader economic reform programme, with officials discussing the need to convert policy priorities into practical measures that can be implemented by relevant institutions. Aurangzeb stressed the importance of moving beyond reform design towards effective implementation, particularly through measures capable of producing measurable improvements in economic activity, investment, employment and the overall business environment. The discussions also highlighted the importance of coordination between federal ministries, provincial governments and implementing agencies to ensure that reforms are carried out consistently.
The proposed World Bank growth and jobs operation was another major area of discussion. The operation includes interventions focused on improving the investment climate, expanding access to finance, increasing productivity across sectors and strengthening labour-market outcomes. The World Bank outlined proposed measures concerning the investment framework, reduction of regulatory and business constraints and improved access to financing for small and medium-sized enterprises. Discussions also covered reforms to strengthen the Prime Minister’s Access to Finance initiative, including work on a unified insolvency framework, factoring legislation and regulations aimed at supporting SME financing. Measures to expand commercial financing and increase private-sector participation were also reviewed.
Sector-specific reforms were also discussed during the meeting, with the World Bank highlighting proposed interventions covering pharmaceuticals, medical products and agriculture. In agriculture, the proposed measures include improvements in seed registration and deregulation of selected commodities, alongside efforts to strengthen international accreditations. These measures are intended to help Pakistani businesses participate more effectively in international procurement opportunities and global markets. The discussions also connected sectoral reforms with broader objectives related to productivity, competitiveness, investment and export growth.
Skills development and labour-market alignment formed another part of the discussions. The World Bank reviewed initiatives aimed at improving the national vocational qualifications framework and increasing the international recognition of Pakistani skills. The meeting also covered the development of formal overseas migration pathways supported by digital platforms. These measures are intended to improve the connection between skills development, employment opportunities and international labour markets while creating more structured mechanisms for overseas employment.
The finance minister and World Bank delegation also reviewed implementation of the National Tariff Policy and ongoing analytical assistance for tariff reforms. The work includes analysis related to the automotive sector and future tariff reforms, with the discussion focusing on competitiveness, productivity, investment and exports. The officials also considered Pakistan’s greater integration into global value chains and the role of tariff policy in creating conditions that can support participation in international markets.
Fiscal and revenue reforms represented another substantial part of the meeting. The World Bank is providing technical assistance to strengthen tax-policy capacity, including support for the Medium-Term Revenue Strategy and revenue-policy modelling. Discussions covered harmonisation of the General Sales Tax, including greater alignment of rules, definitions and classifications for services, stronger federal-provincial coordination and improved data-sharing arrangements. Progress on agricultural income tax reforms was also reviewed, including implementation of amended provincial laws and rules and the development of digital systems for registration, filing and payment. Officials stressed the importance of improving compliance and strengthening data sharing between federal and provincial authorities.
The meeting further covered reforms to provincial property taxation, including efforts to improve and harmonise property valuation methods, strengthen digital systems and gradually move towards more market-based valuation frameworks. On domestic capital markets, the World Bank Group is supporting the development of a reform roadmap through the Capital Markets Development Council. The initiative is aimed at deepening domestic capital markets, expanding financing options and strengthening the broader ecosystem for investment and capital formation.
Public-sector efficiency and the government’s rightsizing agenda were also reviewed, with the World Bank providing technical assistance aimed at improving institutional effectiveness and the use of public resources. Aurangzeb also highlighted the importance of strengthening debt-management capacity and developing domestic bond markets. Discussions included technical cooperation on financial instruments for managing market risks, domestic bond-market development and efforts to improve investor-relations capacity. The World Bank also discussed analytical support concerning Pakistan’s sovereign credit profile and the pathway towards further improvements in credit ratings.
The World Bank delegation additionally briefed the finance minister on analytical work covering governance and institutional effectiveness. The discussion focused on practical and measurable reforms intended to strengthen government effectiveness, regulatory quality, transparency and accountability, along with improvements in the wider business environment. The proposed export-finance products for EXIM Bank formed part of this broader reform discussion, linking trade finance with Pakistan’s efforts to increase exports, improve access to financing and strengthen private-sector participation in economic activity.
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