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Wednesday, May 22, 2024

Pakistan Seeks Long-Term Economic Partnership with World Bank and ADB

Pakistan engages with international financial institutions like the World Bank and ADB, focusing on long-term economic stability, reforms, and strategic investments to address inflation spikes and foster sustainable development amidst challenges.

Pakistan and the World Bank have agreed on the necessity of establishing a rolling country framework plan for 10 years, signaling a long-term economic partnership. Finance Minister Muhammad Aurangzeb emphasized Pakistan’s progress under the 9-month Standby Arrangement (SBA) program during high-level meetings with the President of the World Bank Group, Ajay Banga. Discussions revolved around ongoing reforms in taxation, energy, and privatization, highlighting Pakistan’s commitment to economic stability and growth.

Strengthening Financial Alliances

During the meetings, assurances of full support for Pakistan’s reforms and digitization programs were extended by both the World Bank and the Asian Development Bank (ADB). The World Bank emphasized its commitment to stabilizing Pakistan’s economy and enhancing revenue through collaborative efforts.

Similarly, discussions with the ADB President, Masatsugu Asakawa, focused on strengthening Pakistan’s partnership with the ADB, safeguarding concessional financing, and enhancing the project pipeline for future development initiatives.

Investment Opportunities and Project Financing

The Finance Minister also explored opportunities for expanding investments in Pakistan during discussions with the Chief Executive Officer of the US International Development Finance Corporation (DFC), Scott Nathan. Innovative financing models and leveraging private sector investments were highlighted as essential strategies for economic growth. Moreover, recent approvals by the World Bank for financing projects aimed at digital economy enhancement and flood prevention underscored international support for Pakistan’s development goals.

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Amidst discussions on economic forecasts, the World Bank’s projections indicated a gradual decrease in the inflation rate over the coming fiscal years. Despite challenges posed by inflation spikes attributed to rising electricity and gas prices, collaborative efforts between Pakistan and international financial institutions aim to address these economic concerns and foster sustainable development.

The engagements between Pakistan and key international financial institutions reflect a concerted effort towards long-term economic stability and growth. By prioritizing reforms, digitization, and strategic investments, Pakistan seeks to leverage global partnerships for sustainable development and economic resilience in the face of challenges.