The World Bank has urged the Government of Pakistan to accelerate implementation of policy actions agreed under its $20 billion economic reform partnership, with a broad agenda covering revenue mobilisation, taxation, investment, trade, access to finance, sectoral productivity and institutional reforms. The discussion took place between a World Bank delegation led by Country Director for Pakistan Bolormaa Amgaabazar and Finance Minister Muhammad Aurangzeb in Islamabad. The meeting reviewed progress under the ongoing partnership and focused on moving reform priorities into practical measures that can produce measurable changes in economic activity, investment, employment and the business environment.
The World Bank Group launched its new 10-year Country Partnership Framework for Pakistan for FY2026 to FY2035 in January 2025. The framework is designed around six key outcomes, including increasing fiscal space and improving public-resource management, as well as increasing productive and inclusive private investment. It also covers human capital, climate resilience, energy and environmental improvements. The World Bank has described the framework as a longer-term approach intended to support reforms and investments that require sustained implementation rather than short-term interventions.
During the latest meeting, the World Bank and Finance Ministry reviewed priorities covering economic growth, jobs, fiscal management, revenue mobilisation, capital-market development, trade and investment and institutional reform. The discussions emphasised coordination among federal ministries, provincial governments and implementing agencies, particularly where reforms require changes across different levels of government. Both sides also discussed the need to move from designing reforms towards implementation, with attention on measures that can be monitored through concrete economic and institutional outcomes.
The proposed World Bank growth and jobs operation was also discussed, including measures aimed at improving the investment environment, reducing regulatory and business constraints and expanding access to finance for small and medium enterprises. The World Bank also outlined proposed support for export-finance products for the Export-Import Bank of Pakistan, with the objective of supporting additional trade flows. Discussions further covered the Prime Minister’s Access to Finance initiative, including a unified insolvency framework, factoring legislation and regulations intended to strengthen SME financing and expand commercial financing and private-sector participation.
Sector-specific reforms formed another part of the discussions, with the World Bank highlighting proposed measures for pharmaceuticals, medical products and agriculture. The agriculture-related agenda includes improvements to seed registration and deregulation of selected commodities, while strengthening international accreditations was discussed as a way to support participation in international procurement and overseas markets. The meeting also reviewed skills-development measures, including improvements to the national vocational qualifications framework, greater international recognition of Pakistani skills and formal overseas migration pathways supported through digital platforms.
The two sides also discussed Pakistan’s National Tariff Policy and continuing analytical assistance for tariff reforms. The work includes consideration of reforms in the automotive sector and future tariff changes, with discussions focused on competitiveness, productivity, investment, exports and Pakistan’s integration into global value chains. The World Bank’s broader partnership framework also identifies productive private investment and stronger external trade as important areas of engagement for the country’s longer-term development.
Fiscal and revenue reforms were another major area reviewed during the meeting. The World Bank is providing technical assistance for tax-policy capacity, including support for a medium-term revenue strategy and revenue-policy modelling. The discussions covered harmonisation of general sales tax rules, definitions and classifications for services, along with stronger coordination between federal and provincial authorities and improved data-sharing arrangements. The meeting also reviewed agricultural income tax reforms, including implementation of amended provincial laws and rules as well as digital systems for taxpayer registration, filing and payment.
The World Bank and Finance Ministry further discussed provincial property-tax reforms, including efforts to improve property valuation methods, strengthen digital systems and gradually move towards more market-based valuation frameworks. Better federal-provincial data sharing and compliance mechanisms were also discussed as part of the broader revenue reform agenda. The World Bank has separately linked its support for Pakistan’s tax-revenue reforms with improvements in tax administration, including stronger information technology systems and data analytics capabilities.
Domestic capital-market development was also included in the meeting, with the World Bank supporting work on a roadmap for capital-market reforms through the Capital Markets Development Council. The proposed work is intended to deepen domestic capital markets, expand financing options and strengthen the environment for investment and capital formation. The discussion also covered public-sector efficiency and the government’s rightsizing agenda, with World Bank technical assistance aimed at improving institutional effectiveness and the use of public resources.
Debt management and domestic bond-market development were also reviewed. Finance Minister Muhammad Aurangzeb highlighted the importance of strengthening debt-management capacity and developing domestic bond markets, while the two sides discussed technical cooperation relating to financial instruments for managing market risks, domestic bond-market development and investor-relations capacity. The meeting also included World Bank analytical support concerning Pakistan’s sovereign credit profile and the government’s efforts to improve the factors considered in sovereign ratings, including fiscal and debt sustainability, external buffers, sustainable growth and institutional effectiveness.
The World Bank delegation also briefed the finance minister on analytical work concerning governance and institutional effectiveness. Discussions covered practical reforms aimed at improving government effectiveness, regulatory quality, transparency, accountability and the wider business environment. Both sides reaffirmed their commitment to continued cooperation under the economic reform partnership, with implementation, institutional strengthening, private-sector-led growth, improved management of public resources, investment and expanded economic opportunities remaining central to the agenda.
The latest discussions therefore place emphasis on implementation across several areas of Pakistan’s economic policy framework. The World Bank’s 2026-35 Country Partnership Framework identifies stronger fiscal space and public-resource management and increased productive private investment among its core outcomes, while the current reform discussions extend into taxation, finance, trade, sector regulation, skills, capital markets and public-sector efficiency.
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