Pakistan, World Bank review reform progress, growth and jobs operation

October 02, 2026 (MLN): Pakistan and the World Bank have reviewed progress under their ongoing economic reform partnership, with discussions centred on a proposed World Bank growth and jobs operation, tax and fiscal reforms, capital-market development, debt management and sovereign credit ratings.

Both sides stressed moving from reform design to implementation to deliver measurable gains in economic activity, investment and jobs.

The review came during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and a World Bank delegation led by Country Director Ms. Bolormaa Amgaabazar, according to a press release issued.

The finance minister said the focus must be on practical measures that improve the business environment, while the meeting looked at better coordination among ministries, provincial governments and implementing agencies.

On the proposed growth and jobs operation, the World Bank outlined measures covering the investment framework, reduction of regulatory and business constraints, SME access to finance, and export-finance products for the EXIM Bank of Pakistan to support incremental trade flows.

Reforms to strengthen the Prime Minister's Access to Finance initiative were also discussed, including a unified insolvency framework, factoring legislation and regulations for SME financing, and wider private-sector participation in commercial financing.

On sectoral reforms, the World Bank highlighted proposed interventions in pharmaceuticals and medical products, and in agriculture, including better seed registration, deregulation of selected commodities and stronger international accreditations to help access international procurement and markets.

The meeting also reviewed initiatives on skills development and labour-market alignment, including improvements in the national vocational qualifications framework, greater international recognition of skills, and formal overseas migration pathways supported by digital platforms.

Both sides reviewed implementation of the National Tariff Policy and ongoing analytical support for tariff reforms, including work on the automotive sector and future reforms, with an emphasis on competitiveness, exports and integration into global value chains.

On fiscal and revenue reforms, the meeting reviewed World Bank technical assistance to strengthen tax-policy capacity, including support for the Medium-Term Revenue Strategy and revenue-policy modelling.

Discussions also covered GST harmonisation, including alignment of rules, definitions and classifications for services, better federal-provincial coordination and stronger data-sharing.

The meeting reviewed progress on agricultural income tax reforms, including implementation of amended provincial laws and rules and digital systems for registration, filing and payment, along with the need to strengthen compliance and federal-provincial data sharing. It also covered provincial property-tax reforms, including efforts to harmonise valuation approaches, strengthen digital systems and move progressively towards market-based valuation.

On domestic capital markets, the meeting discussed World Bank Group support for a reform roadmap through the Capital Markets Development Council, aimed at deepening markets, broadening financing avenues and strengthening the investment ecosystem.

It also reviewed World Bank support for public-sector efficiency and the Government's rightsizing agenda.

The finance minister highlighted the importance of debt-management capacity and domestic bond markets. Discussions covered technical cooperation on financial instruments for managing market risks, domestic bond-market development and investor-relations capacity.

The meeting also discussed World Bank analytical support on Pakistan's sovereign credit profile and the pathway towards further rating improvements.

Senator Aurangzeb said the Government would work to strengthen the quantitative and qualitative drivers of sovereign ratings, including fiscal and debt sustainability, external buffers, sustainable growth, institutional effectiveness and structural reforms, while deepening engagement with relevant stakeholders.

The World Bank delegation also briefed the finance minister on analytical work on governance and institutional effectiveness, focusing on practical and measurable reforms to improve government effectiveness, regulatory quality, transparency, accountability and the business environment.

Both sides reaffirmed their commitment to continued cooperation under the partnership, with a shared focus on implementation, institutional strengthening, private-sector-led growth, better public-resource management and stronger investment.

The delegation also included Operations Manager Mr. Lasse Melgaard; IFC Division Director Mr. Simon Andrews; Economist Ms. Anna Godfriedovna Okutu Twum; Senior Public Sector Specialist Ms. Irum Touqeer; IFC Country Officer Ms. Sahar Etezaz; Practice Manager Mr. Shabih Ali Mohib; Lead Economist Mr. Tobias Akhtar Haque; Senior Economist Mr. Rafay Khan; and Operations Analyst Mr. Omar Riaz. The Secretary Finance and senior officials of the Finance Division also attended.

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