Pakistan and the World Bank have reviewed progress under their ongoing economic reform partnership, with discussions focused on a proposed growth and jobs operation, tax and fiscal reforms, capital-market development, debt management and sovereign credit ratings. The review took place during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and a World Bank delegation led by Country Director Bolormaa Amgaabazar. Both sides discussed the need to move from reform planning towards implementation, with emphasis on measures that can produce measurable improvements in economic activity, investment and employment.
The meeting also focused on strengthening coordination among federal ministries, provincial governments and implementing agencies as reforms move into their implementation stages. The proposed World Bank growth and jobs operation includes measures related to the investment framework, reduction of regulatory and business constraints, access to finance for small and medium enterprises and export-finance products for the Export-Import Bank of Pakistan. The proposed export-finance support is aimed at facilitating additional trade flows, while broader reforms are intended to improve conditions for investment and private-sector activity.
The World Bank and Finance Division also reviewed measures linked with the Prime Minister’s Access to Finance initiative. The discussions included a unified insolvency framework, factoring legislation and regulations supporting SME financing, along with measures designed to expand commercial financing and private-sector participation. Sector-specific reforms were also discussed, particularly in pharmaceuticals, medical products and agriculture. The proposed agriculture measures include improvements in seed registration, deregulation of selected commodities and stronger international accreditations that could support participation in international procurement and access to overseas markets.
Skills development and labour-market alignment formed another part of the discussions. The World Bank outlined initiatives involving improvements to the national vocational qualifications framework, greater international recognition of Pakistani skills and the development of formal overseas migration pathways supported by digital platforms. Both sides also reviewed implementation of the National Tariff Policy and ongoing analytical assistance for tariff reforms, including work related to the automotive sector and future tariff changes. The discussions placed emphasis on competitiveness, productivity, exports and Pakistan’s integration into global value chains.
Fiscal and revenue reforms remained a central 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. The discussions covered harmonisation of general sales tax rules, definitions and classifications for services, along with improved coordination between federal and provincial authorities and stronger data-sharing arrangements. The meeting also reviewed agricultural income tax reforms, including implementation of amended provincial laws and rules and the development of digital systems for registration, filing and payment.
Provincial property-tax reforms were also examined, with the agenda including efforts to harmonise property-valuation approaches, strengthen digital systems and progressively move towards more market-based valuation. The discussion also highlighted the importance of improving compliance and strengthening data sharing between federal and provincial authorities. These measures form part of the wider revenue reform agenda being discussed under the World Bank’s support for Pakistan’s economic reform programme.
The meeting further covered domestic capital-market development, with the World Bank Group supporting the development of a reform roadmap through the Capital Markets Development Council. The roadmap is aimed at deepening domestic capital markets, broadening financing avenues and strengthening the wider investment ecosystem. Public-sector efficiency and the government’s rightsizing agenda were also reviewed, with World Bank support focused on improving institutional effectiveness and the use of public resources.
Debt management and domestic bond-market development were also discussed. Senator Muhammad Aurangzeb highlighted the importance of strengthening debt-management capacity and developing domestic bond markets. The discussions covered technical cooperation involving financial instruments for managing market risks, domestic bond-market development and investor-relations capacity. The meeting also reviewed World Bank analytical support concerning Pakistan’s sovereign credit profile and the pathway towards further improvements in sovereign ratings.
Senator Aurangzeb said the government would work to strengthen both the quantitative and qualitative factors affecting sovereign ratings. These include fiscal and debt sustainability, external buffers, sustainable economic growth, institutional effectiveness and continued structural reforms. He also highlighted continued engagement with relevant stakeholders as part of efforts to strengthen Pakistan’s sovereign credit standing.
The World Bank delegation separately briefed the finance minister on analytical work relating to governance and institutional effectiveness. The discussions focused on practical and measurable reforms aimed at improving government effectiveness, regulatory quality, transparency, accountability and the overall business environment. The delegation included Operations Manager Lasse Melgaard, IFC Division Director Simon Andrews, Economist Anna Godfriedovna Okutu Twum, Senior Public Sector Specialist Irum Touqeer, IFC Country Officer Sahar Etezaz, Practice Manager Shabih Ali Mohib, Lead Economist Tobias Akhtar Haque, Senior Economist Rafay Khan and Operations Analyst Omar Riaz. The Secretary Finance and senior officials of the Finance Division also attended.
Both sides reaffirmed their commitment to continued cooperation under the economic reform partnership, with implementation, institutional strengthening, private-sector-led growth, improved public-resource management and stronger investment remaining key areas of focus. The discussions indicate that the next phase of the partnership will place greater attention on implementing the agreed measures across taxation, finance, trade, investment, sectoral regulation, capital markets and public-sector management.
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