The World Bank has introduced a strategic 10-year Country Partnership Framework for Pakistan, targeting critical socio-economic challenges from 2026 to 2035.
World Bank Vice President for South Asia Martin Reiser officially launched the initiative, committing $20 billion in funds to support Pakistan's development over the next 10 years.
This framework sets ambitious goals over the next five to ten years, focusing on reducing poverty, improving child health, and addressing climate change.
Key objectives include promoting clean energy, improving air quality, and encouraging sustainable development through public participation. The plan also aims to boost private investment, create jobs, and enhance trade.
The World Bank acknowledges that while the Pakistani economy is recovering from recent crises, it still faces challenges, including political instability. The Bank recognizes that the Pakistani government has implemented reforms in the financial, energy, and business sectors to accelerate economic growth.
“However, there is a lack of confidence due to past failures,” the World Bank noted. Economic projections indicate Pakistan's growth trajectory, with the World Bank forecasting economic growth rates of 2.8% in the current fiscal year, potentially rising to 3.2% next year and 3.4% in 2027. Inflation is expected to gradually decrease from 11.1% this year to 8% by 2027.
It observed that the tax-to-GDP ratio will expected to reach 10.9% this year and 11.2% in 2027.
The World Bank also predicted an increase in Pakistan's debt obligations, with the debt-to-GDP ratio predicted to reach 73.8% this year and 74.7% next year. It said this rate is likely to rise to 75.2%.
Prime Minister Shehbaz Sharif also participated in the opening ceremony of the framework, highlighting a significant milestone in Pakistan's economic development.
During his address, the Prime Minister acknowledged the World Bank's long-standing support for Pakistan across various sectors. He noted that the World Bank has consistently provided assistance to Pakistan in diverse areas.
The PM noted that the reforms being implemented should have been initiated decades ago. He stressed that the funds would be directed towards critical areas such as education and health, with a primary goal of eliminating corruption. "The government team is making efforts to achieve difficult but impossible tasks and goals."
Shehbaz also noted that the presence of the World Bank's vice president was a "guarantee of Pakistan's development," underscoring the international financial institution's confidence in the country's potential.
