ISLAMABAD: Prime Minister Shehbaz Sharif has expressed gratitude for the World Bank’s decision to invest $40 billion in Pakistan, calling it a significant and promising development for the country.
In a statement released by the Prime Minister’s Office Press Wing, the PM shared his appreciation during a meeting with a delegation of World Bank Executive Directors, who are currently visiting Pakistan.
He emphasised the longstanding partnership between Pakistan and the World Bank, spanning more than 70 years. The Prime Minister highlighted several key projects supported by the Bank that have been integral to Pakistan’s development. Notably, the World Bank’s assistance during the 2022 floods was a critical lifeline to those affected.
As part of the new Country Partnership Framework, the World Bank is set to invest $40 billion in Pakistan, which the PM regards as a major positive development. Of this amount, $20 billion will be allocated to initiatives in health, education, youth development, and other vital social sectors. This marks the start of a new era of progress for Pakistan.
Furthermore, $20 billion will be directed towards the country’s private sector under the International Finance Corporation (IFC), a move expected to enhance economic growth. The PM expressed his appreciation for the World Bank’s confidence in Pakistan’s government policies.
Prime Minister Shehbaz also pointed to the swift progress being made in Pakistan’s institutional and economic reforms, which are guiding the nation’s economy in the right direction. While acknowledging that more work is needed for sustainable growth, he praised the efforts of those responsible for these improvements.
The PM noted positive trends, such as rising exports and remittances, falling interest rates, increasing investment in the production sector, and the ongoing push for transparency to combat corruption. Reforms in the Federal Board of Revenue (FBR) and the energy sector are high on the government’s agenda to ensure uninterrupted power supply and reduce inefficiencies.
He also mentioned the Special Investment Facilitation Council (SFIC), which has created an attractive investment environment by involving all key stakeholders. This demonstrates the government’s priority of fostering partnerships over-relying on loans.
The World Bank delegation praised the ongoing reforms in Pakistan, particularly in energy, industry, exports, privatisation, and taxation, acknowledging the positive results being achieved.
The World Bank delegation, consisting of nine Executive Directors, is in Pakistan to discuss potential economic development projects and investment opportunities.
In addition, Pakistan is preparing for negotiations with the International Monetary Fund (IMF) for a $1.5 billion loan, which will be discussed during the IMF’s visit to the country later this month. The delegation will also review a combined loan amount of $2.5 billion, covering both the new programme and the next tranche of the previously approved $7 billion programme.
Sources reveal that the IMF delegation will arrive on February 24 to negotiate the $1.5 billion concessional loan, which is expected to support the country’s efforts in addressing climate change-related damages.
