PM Shehbaz welcomes $40b World Bank investment

$40 billion World Bank investment to create new growth opportunities in Pakistan, says PM.

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Prime Minister Shehbaz Sharif expressed his gratitude for the $40 billion investment in Pakistan under the World Bank, calling it a welcome development.

According to a statement issued by the Prime Minister's Office Press Wing, the PM met with a delegation of World Bank Executive Directors, where he welcomed their visit to Pakistan.

He highlighted the long-standing partnership between the World Bank and Pakistan, which spans over seven decades. Many significant projects supported by the World Bank have played a key role in the country’s development.

The PM stated that Pakistan has benefitted greatly from its partnership with the World Bank, particularly during the 2022 floods when the World Bank provided substantial assistance to those affected.

Under the recent Country Partnership Framework, the World Bank is set to invest $40 billion in Pakistan, which is a positive development.

He further explained that $20 billion will be invested in various projects related to health, education, youth development, and other social sectors, marking the beginning of a new era of progress.

Additionally, under the IFC, $20 billion will be invested in Pakistan’s private sector, which is expected to boost the country’s economy. He expressed appreciation for the World Bank’s confidence in the government’s policies.

PM Shehbaz also mentioned that Pakistan’s institutional and economic reform programme is progressing swiftly. The country’s economy is moving in the right direction towards development.

While further progress is required for sustainable economic growth, he credited the efforts of the team behind these improvements.

He further said the exports and remittances are increasing, interest rates are declining, leading to more investment in the production sector, and transparency is being introduced into systems to control corruption.

The government is prioritising digitisation in reforms at the Federal Board of Revenue (FBR), while reforms in the energy sector are aiming to ensure uninterrupted electricity supply and reduce losses.

The PM noted that the establishment of the SFIC (Special Investment Facilitation Council) has provided an attractive environment for investment, operating under a unique system that involves participation from all stakeholders. The government has prioritised investment and partnership over loans.

The World Bank delegation praised Pakistan’s ongoing reform programme, acknowledging the positive outcomes being achieved, which is encouraging. The delegation also commended the government’s reforms in energy, industry and exports, privatisation, taxation, and other sectors.

It is worth mentioning that the World Bank delegation, consisting of nine Executive Directors, is on a visit to Pakistan. They oversee the portfolios of various countries at the World Bank and are in Pakistan to discuss economic development projects and investment.

The meeting was attended by federal ministers Ahsan Iqbal, Ahad Khan Cheema, Sardar Owais Khan Laghari, Musadik Malik, and state ministers Ali Pervez Malik, Shaza Fatima Khawaja, the PM's Coordinator Romaiza Khurshid Alam, Senator Sherry Rehman, Member of National Assembly Nafisa Shah, PM’s Representative for the Polio Program Ayesha Raza Farooq, and other senior officials.

Meanwhile, Pakistan has begun preparations for securing another $1.5 billion loan programme from the International Monetary Fund (IMF), with negotiations scheduled to take place later this month.

Two IMF delegations are expected to visit Pakistan to conduct an economic review for both the new loan programme and the next tranche of the already approved $7 billion programme. The total discussions will cover a combined loan amount of $2.5 billion.

According to sources, an IMF delegation will visit Pakistan on February 24 to negotiate the $1.5 billion concessional loan. This new loan programme is reportedly aimed at addressing the damages caused by climate change.