The World Bank has announced a significant commitment to Pakistan, pledging US$20 billion over the next decade to support various developmental initiatives. This initiative, outlined in the newly launched Country Partnership Framework (CPF), aims to address critical issues such as climate change and to foster private sector growth in the country. The CPF will be implemented starting in 2026 and marks the first of its kind between the World Bank and Pakistan.
Currently, Pakistan is navigating a challenging economic landscape, with a US$7 billion bailout program from the International Monetary Fund (IMF). This program mandates that Pakistan enhance its government revenues and secure external financing. A significant portion of Pakistan's financial support has traditionally come from loans provided by China and Gulf nations. As the country faces an ongoing economic crisis, economists and international institutions are urging the Pakistani government to enact major reforms.
The newly committed US$20 billion builds on the World Bank's existing investment of approximately US$17 billion across 106 projects in Pakistan. The CPF aims to prioritize investments in clean energy and climate resilience, which are crucial for the sustainable development of the nation. According to Zeeshan Sheikh, the World Bank's International Finance Corporation Country Manager for Pakistan and Afghanistan, "We are focused on prioritising investment and advisory interventions that will help crowd-in much needed private investment in sectors critical for Pakistan's sustainable growth and job creation, including energy and water, agriculture, access to finance, manufacturing and digital infrastructure."
Prime Minister Shehbaz Sharif welcomed the CPF agreement, highlighting its significance in addressing pressing development issues. This partnership is seen as a vital step toward boosting private sector growth, which is essential for expanding fiscal space for government investment. The World Bank emphasizes that policy and institutional reforms are crucial components of this strategy.
As the CPF rolls out over the coming years, it is expected to transform various sectors within Pakistan, promoting sustainable practices and enhancing economic resilience. The commitment from the World Bank represents a potential turning point for Pakistan, offering a pathway to recover from its economic struggles while addressing key developmental challenges.
Leave a Reply