Prime Minister Shehbaz Sharif has welcomed a $40 billion investment from the World Bank. He called it a major boost for Pakistan’s economy and a step toward sustainable development.
World Bank’s Long-Term Commitment
In January, the World Bank pledged $20 billion under a 10-year Country Partnership Framework (CPF). This framework aims to support Pakistan’s development through financial and technical assistance. During a meeting in Islamabad, PM Shehbaz confirmed that the total investment had now reached $40 billion.
According to PM Shehbaz, this investment will help strengthen key sectors. He said it will support projects in health, education, and youth development. The prime minister also highlighted the private sector’s role, with $20 billion allocated under the International Finance Corporation (IFC).
Pakistan’s Development Partnership with World Bank
PM Shehbaz acknowledged the World Bank’s past contributions to Pakistan. He said the bank played a crucial role in post-flood recovery efforts in 2022. He praised the organization for its continued support in national development projects.
“The World Bank’s investment is a testament to confidence in Pakistan’s economic policies,” PM Shehbaz stated. He emphasized that his government’s reforms were yielding positive results.
Economic Reforms Showing Progress
The prime minister assured the delegation that Pakistan’s economic situation was improving. He noted an increase in exports and remittances. Prime Minister also mentioned rising investments in manufacturing due to lower interest rates.
He added that the government was focusing on digitizing the Federal Board of Revenue (FBR) to curb corruption. PM highlighted the Special Investment Facilitation Council (SIFC) as a major initiative to attract investors.
World Bank Delegation’s Response
Members of the World Bank delegation praised Pakistan’s economic reforms. They acknowledged improvements in economic indicators and policy implementation. The delegation reaffirmed the bank’s commitment to Pakistan’s development goals.
The World Bank’s Country Manager for Pakistan, Najy Benhassine, explained that the CPF is more than just a loan program. He said it includes technical assistance, advisory services, and analytical support.
Breakdown of Financial Support
The CPF’s estimated funding ranges between $30 billion and $40 billion over 10 years. Project documents indicate that actual lending for FY26-35 will be around $20 billion. Of this, $14 billion will come from the International Development Association (IDA), while $6 billion will be from the International Bank for Reconstruction and Development (IBRD).
The IBRD, the World Bank’s lending arm, has provided over $48.3 billion to Pakistan since 1950. Its current portfolio includes 106 projects worth $17 billion.
Future Economic Outlook
PM Shehbaz remains optimistic about Pakistan’s economic future. He said that uninterrupted power supply and deficit reduction had been achieved. He expressed confidence that the country was on the right track.
The delegation will continue discussions on investments and development projects during their visit.
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