The World Bank has announced its first-ever Country Partnership Framework with Pakistan in a move that could bring much-needed support for an economy that has been beleaguered in recent years.
The CPF is designed to be implemented over a period of 10 years and was approved after receiving votes from 19 out of the World Bank’s 24 directors.
According to a statement from the World Bank, the CPF was discussed with the aim of supporting “inclusive and sustainable development through a strong focus on building human capital; fostering durable private sector growth; and building economic, social and environmental resilience in the country.”
While newspapers Dawn and Express Tribune claimed that the total amount pledged by the World Bank was $40 billion, Prime Minister Shehbaz Sharif mentioned only $20 billion being pledged in a statement on X (formerly Twitter).
Welcoming the announcement of the CPF, PM Shehbaz thanked General Asim Munir and his colleagues for their efforts to ‘strengthen Pakistan’s foundation’.
He added that the money pledged by the World Bank under the CPF will go towards six key areas including child nutrition, quality education, clean energy, climate resilience, inclusive development and private investment.
Shehbaz also said that the World Bank agreement was a sign of the institution’s confidence in Pakistan’s economic potential.
The statement form the World Bank said that private sector engagement and joint financing from other sources will be needed to full realise the plans outlined in the CPF.
It also added that the CPF’s design had been informed by ‘policy notes and analytical framework’ in conjunction with the government’s own priorities. It also mentioned that the CPF’s plans are aligned with Uraan Pakistan, the plan recently announced by the Prime Minister.
Pakistan’s economy is slowly showing signs of recovery of after a significant dip in inflation which has led to a lowering of the policy rate. The recovery began when Pakistan finally managed to agree on a bailout program with the International Monetary Fund worth $7 billion last year after lengthy negotiations.
Still the country continues to see a depreciating currency and depleting foreign exchange reserves. The government has responded by creating a ‘homegrown’ economic plan to attract foreign investment and encourage economic activity at home.
