Prime Minister Shehbaz Sharif welcomed a $40 billion \u201cinvestment\u201d by the World Bank on Monday, stating that the inflow will open \u201ca new chapter\u201d in various sectors of the economy, according to a statement issued by his office.<\/p>\n
In January, an official statement announced that the World Bank pledged to provide $20bn to Pakistan under a 10-year country partnership framework (CPF) to support inclusive and sustainable development within the country.<\/p>\n
According to the statement from Prime Minister House, PM Shehbaz welcomed a delegation of nine World Bank executive directors in Islamabad today.<\/p>\n
\u201cUnder the World Bank\u2019s recent Country Partnership Framework, an investment of $40bn will be made in Pakistan, which is welcome,\u201d the statement quoted the prime minister as saying.<\/p>\n
\u201cWith the support of the World Bank, several major projects were built in Pakistan for national development and reconstruction, which played an important role in Pakistan\u2019s development,\u201d he added.<\/p>\n
The PM further said that Pakistan benefitted from its partnership with the World Bank, as it provided support to the country in the aftermath of the devastating floods of 2022 and supported multiple development projects.<\/p>\n
According to the statement, PM Shehbaz said that $20bn will be invested into Pakistan\u2019s private sector under the International Finance Corporation, while $20bn will be used to open \u201ca new chapter of development \u2026 in various sectors, including health, education, youth development and others\u201d.<\/p>\n
\u201cI am grateful for the World Bank\u2019s confidence in our government\u2019s policies,\u201d the PM said. \u201cThe country\u2019s programme for institution and economic reform is progressing swiftly, while the economy is heading in the right direction.\u201d<\/p>\n
PM Shehbaz noted that there was still a way to go to achieve sustainable economic development, adding that any credit for the improvement must go to his team.<\/p>\n
Members of the delegation appreciated Pakistan\u2019s reform programme and noted that it was yielding positive results, calling it a \u201cpositive development\u201d.<\/p>\n
\u201cPakistan\u2019s journey towards economic reform is progressing swiftly under the leadership of the Prime Minister,\u201d the World Bank delegation was quoted as saying. The statement added that the delegation will discuss investments and economic development projects during their visit.<\/p>\n
In an interview with Nikkei Asia on February 14, Najy Benhassine, World Bank country manager for Pakistan, described the CPF as \u201cnot a loan program alone\u201d but rather a \u201ccomprehensive engagement\u201d.<\/p>\n
\u201cWe provide technical assistance, advisory services and analytical support alongside financing,\u201d he added.<\/p>\n
The CPF is designed as a long-term approach with the flexibility to adjust to evolving circumstances and shocks.<\/p>\n
Although the size and ambition of World Bank Group funding for the CPF is estimated at around $30-40bn over 10 years, project documents suggest that the actual lending envelope for FY26-35 will total around $20bn.<\/p>\n
Of this, around $14bn will come from International Development Association (IDA) funding. The bank has recently achieved the replenishment target of $100bn under IDA21, and the $14bn figure is based on the assumption that the funding available in the coming cycles remains constant in real terms and about the average of IDA18, IDA19, and IDA20 amounts.<\/p>\n
These are the funds available to the association, committed by donors who meet every three years to replenish IDA resources and review its policy framework.<\/p>\n
A second component derives from International Bank for Reconstruction and Development (IBRD) funds, which are estimated at around $6bn. These depend on country demands, overall macroeconomic performance, global economic\/financial developments that affect IBRD\u2019s financial capacity, and demands by other borrowers.<\/p>\n
The IBRD is the lending arm of the World Bank Group and is one of the two international financial institutions \u2014 alongside the International Monetary Fund \u2014 established by the Bretton Woods agreement after the second World War.<\/p>\n
According to the bank, IBRD has provided over $48.3bn in assistance since 1950, and the bank\u2019s current portfolio includes 106 projects and a total commitment of $17bn in Pakistan.<\/p>\n
Progress report
\nAccording to the statement, the PM apprised the delegation about the progress of Pakistan\u2019s economic reforms, stating that there were positive developments.<\/p>\n
\u201cOur exports and remittances are increasing,\u201d he said. \u201cInvestment in manufacturing has risen due to low interest rates and to control corruption, work on digitisation in the FBR (Federal Board of Revenue) is continuing on a priority basis.\u201d<\/p>\n
PM Shehbaz also added that in the power sector, the country has experienced an \u201cuninterrupted power supply\u201d alongside a deficit reduction.<\/p>\n
The PM continued: \u201cThrough SIFC (Special Investment Facilitation Council), we have created an attractive environment for investors. This unique system involves all stakeholders.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Prime Minister Shehbaz Sharif welcomed a $40 billion \u201cinvestment\u201d by the World Bank on Monday, stating that the inflow will open \u201ca new chapter\u201d in various sectors of the economy, according to a statement issued by his office. In January, an official statement announced that the World Bank pledged to provide $20bn to Pakistan under […]<\/p>\n","protected":false},"author":1,"featured_media":5739,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news"],"_links":{"self":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/5738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5738"}],"version-history":[{"count":1,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/5738\/revisions"}],"predecessor-version":[{"id":5740,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/5738\/revisions\/5740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/media\/5739"}],"wp:attachment":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}