Pakistan investment still below World Bank targets

January 15, 2026 (MLN): Pakistan continues efforts to translate macroeconomic stability into higher private investment and job creation, as investment levels remain below the targets set under the World Bank’s Country Partnership Framework (CPF).

Ongoing fiscal and revenue reforms, state-owned enterprise restructuring, and regulatory modernization are part of the government’s strategy to support private sector-led growth.

The Finance Ministry and World Bank reviewed progress on CPF projects, including policy-based engagements, tariff rationalization, and capital market development, according to the press release.

The World Bank emphasized results-based approaches with defined policy milestones, performance indicators, and technical assistance to accelerate investment and export competitiveness.

Employment and skills development were highlighted as critical for economic growth, with focus on vocational and technical training aligned with domestic and overseas labor demand, particularly in IT, healthcare, nursing, hospitality, and construction.

Digital labor platforms and labor mobility initiatives are being used to improve workforce productivity and overseas employment opportunities.

Sectoral priorities identified for future interventions include digital services exports, agriculture and agribusiness, minerals and mining, healthcare, and select manufacturing segments.

Potential use of policy-based guarantees to support debt refinancing and innovative financing approaches was also discussed, contingent on policy milestones.

The initiatives aim to consolidate macroeconomic gains, boost private investment, and generate employment while strengthening Pakistan’s institutional and regulatory framework.

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