World Bank endorses 10-year framework for Pakistan

January 15, 2025 (MLN): The World Bank’s Board of Directors has endorsed the first-ever 10-year Country Partnership Framework (CPF) for Pakistan on Tuesday.

The framework aims to promote inclusive and sustainable development by prioritizing human capital development.

It also focuses on fostering resilient private sector growth and enhancing economic, social, and environmental resilience in the country, according to the press released issued by the world bank.

“Our new decade-long partnership framework for Pakistan represents a long-term anchor for our joint commitment with the Government,” said Najy Benhassine, World Bank Country Director for Pakistan.

He further mentioned that it aims to address some of the most acute development challenges facing the country, including child stunting, learning poverty, exceptional climate change exposure, and the sustainability of its energy sector.

 “Support to policy and institutional reforms that boost private sector-led growth and create fiscal space to finance the investments needed to address these challenges will remain key in our engagements.” he added.

This extended framework focuses on six key development areas, supported by a monitoring and evaluation scorecard to track progress.

The CPF will prioritize six key development areas, including addressing child stunting, combating climate change, enhancing educational outcomes, ensuring access to clean water, and fostering both public resource mobilization and private investment for holistic development.

These outcomes will be bolstered by cross-cutting measures, including social safety nets and financial inclusion, to support and protect the most vulnerable populations, especially women, along with improved digital and transport connectivity.

Realizing these ambitious goals will necessitate mobilizing resources through greater private sector engagement and strengthened joint financing and coordination with other development partners.

“We are focused on prioritizing investment and advisory interventions to attract much-needed private investment in critical sectors for Pakistan’s sustainable growth and job creation,” said Zeeshan Sheikh, International Finance Corporation Country Manager for Pakistan and Afghanistan.

He further stated these sectors include energy and water, agriculture, access to finance, manufacturing, and digital infrastructure.

In addition, we are working with public and private partners to tackle key policy challenges that limit the private sector's more inclusive participation in Pakistan’s economy, he added

“Guarantee instruments under the World Bank Group’s Guarantee Platform will support private investment in areas aligned with the development outcomes under the CPF,” said Sebnem Erol Madan, the Multilateral Investment Guarantee Agency Director of Economics and Sustainability.

These areas will involve roles for both the domestic and foreign private sectors, she added.

A series of policy notes and other analytical work helped shape the CPF priorities.

This process was further informed by extensive consultations with key stakeholders across the country, including the government, private sector, civil society, think tanks, academia, media, and development partners.

The CPF has been shaped by the Government’s priorities at both the Federal and Provincial levels, as well as insights gained from previous country engagements.

It is also closely aligned with the key objectives of the recently launched National Economic Transformation Plan, Uraan Pakistan, and the Prime Minister’s Economic Transformation Agenda and Implementation Plan.

Since the World Bank Group began operations in Pakistan in 1950, IBRD has provided over $48.3 billion in assistance.

IFC has invested approximately $13bn to promote private sector-led solutions, and MIGA has provided $836 million in guarantees.

The current portfolio for IBRD, IFC and MIGA in Pakistan includes 106 projects and a total commitment of $17bn.

Copyright Mettis Link News