Govt discusses $20 billion partnership framework with World Bank

Executives from the World Bank (WB) met with Finance Minister Muhammad Aurangzeb to go over the cash-strapped economy’s growth targets. As per credible reports, the international lender also discussed the $20 billion fiscal program under the Country Partnership Framework (CPF).

The Ministry of Finance (MoF) issued a press release which outlined how the CPF will attempt to eradicate issues in Pakistan’s health and education sectors. Moreover, the framework will also consider other key development factors, namely climate resilience and long-term sustainable growth.

According to reports, high-ranking officials from the MoF and the Federal Board of Revenue were also present in the meeting. The meeting was called to go over the WB’s upcoming investments in the country’s economic reforms.

The WB’s team reportedly shared their progress regarding the National Growth and Fiscal Program (NGFP), which outlined multiple strategies Islamabad can take. These strategies could help Pakistan mobilise revenue, improve the efficiency of services and promote both sustainable and inclusive growth in the economy.

Reports reveal the WB intends to foster an environment that is conducive to business growth, and to create such an environment by assisting Pakistan in implementing progressive reforms.

Moreover, analysts have outlined that the WB aims to guarantee that state resources are utilized effectively to promote ‘inclusive development’. During the meeting, the WB’s team informed Muhammad Aurangzeb of various policy proposals that they had analysed.

He highlighted how the federal government was committed to following an ‘integrated approach’ to trade, fiscal and private sector reforms. Moreover, he stressed how both provincial and federal bodies must collaborate to ensure that the economy moves in the right direction.

Muhammad Aurangzeb reportedly announced that the country needed performance and outcome-based reforms – to account for issues pertaining to human development and the economy.

He cited the National Fiscal Pact, going over the need to follow a country-wide approach to ensure macroeconomic stability in the coming periods. According to Aurangzeb, a unified strategy under which federal, provincial and municipal governments work collaboratively would allow Pakistan to enjoy sustained macroeconomic growth.

Reports reveal that the meeting ended with a shared understanding of the roadmap Pakistan needs to follow to improve the economy. Both Islamabad and the WB remain committed to collaborating to pass progressive economic reforms in the country.