Pakistan and the World Bank are embarking on a new chapter in their collaboration. Prime Minister Shehbaz Sharif met with a World Bank delegation led by Regional Vice President for South Asia, Martin Raiser, in Islamabad. The discussions centered on a long-term partnership aimed at transforming Pakistan’s economy and achieving sustainable development.
Prime Minister Sharif expressed his appreciation for the World Bank’s past support, particularly their assistance in building climate-resilient infrastructure after the 2022 floods. He also outlined the government’s reform agenda, which tackles critical areas like digitizing the tax system, reforming the power sector, boosting agricultural yields, and addressing child stunting.
The World Bank responded positively to Pakistan’s reform agenda and pledged its collaboration. Both parties agreed to develop a new Country Partnership Framework, a ten-year roadmap outlining key development priorities. This framework will be reviewed annually and will allow for adjustments as needed.
The initial focus areas of the partnership include structural economic reforms, specifically mobilizing domestic resources through digitalization and tax reforms. Human capital development will also be a major target, with a focus on tackling child stunting and improving education. Additionally, the partnership will address the energy sector through increased private sector involvement and a transition towards cleaner and more affordable renewable energy sources. Finally, collaboration on climate adaptation strategies will be crucial to help Pakistan manage water scarcity and the challenges posed by climate change.
Pakistan will leverage the World Bank’s expertise in various areas. This includes mobilizing global knowledge, building institutional capacity, utilizing digital transformation for development, and encouraging private sector participation. The World Bank will also work with various stakeholders, including government officials, academia, parliamentarians, civil society, and the private sector, to ensure the new framework aligns with Pakistan’s overall development strategy.
The signing of a joint communique by the World Bank’s Country Representative and Pakistan’s Secretary of Economic Affairs Division signifies the formalization of this new and promising partnership.
