On Thursday, Prime Minister Shehbaz Sharif hailed a landmark $20 billion partnership between Pakistan and the World Bank, emphasizing that the Country Partnership Framework (CPF) represents a transformational plan poised to address some of the country’s most pressing challenges.
This collaboration, which spans a decade, is the largest development commitment Pakistan has ever received from a global financial institution. It focuses on tackling critical issues such as unemployment, climate change, and technological upgrades, all aimed at ensuring long-term economic stability and prosperity for Pakistan.
In a statement, Prime Minister Sharif expressed gratitude to the World Bank for its steadfast support, noting that the initiative reflects the trust the Bank has placed in Pakistan. He further outlined that the CPF would prioritize several high-impact sectors, including information technology (IT), climate resilience, and social protection for vulnerable populations. Key initiatives include the digitization of the Federal Board of Revenue (FBR), a corruption-reduction pilot project at Karachi Port, and enhanced social protection programs for Pakistan’s most at-risk communities.
“This is Pakistan’s moment to embark on a new era of development,” said Prime Minister Sharif. “We are fully committed to ensuring the success of this partnership, which will benefit millions of people across the country. However, achieving our ambitious goals will require unity and collaboration among all sectors of society, including politicians, bureaucrats, and experts.”
The World Bank’s Vice President for South Asia, Martin Raiser, expressed his support for Pakistan’s recent economic reforms and emphasized that the CPF would play a vital role in stabilizing the nation’s economy while fostering inclusive growth. “Through this partnership, Pakistan can achieve sustainable, long-term growth that addresses both economic challenges and societal needs,” Raiser said, underscoring the importance of private sector involvement in achieving CPF objectives.
According to the World Bank’s Country Director for Pakistan, Najy Benhassine, the $20 billion figure is an indicative amount, with actual funding allocations to be determined in consultation with Pakistani authorities. He highlighted the central role of digital transformation in realizing the CPF’s goals, noting that it is a key enabler for achieving economic and social progress.
The CPF includes ambitious long-term targets, including:
- Reducing child stunting by improving access to clean water and sanitation services.
- Improving educational outcomes by providing quality education to 12 million students.
- Building climate resilience for 75 million individuals, with a focus on flood protection and climate adaptation.
- Expanding access to renewable energy, adding 10 gigawatts of capacity.
- Increasing the tax-to-GDP ratio to more than 15% to mobilize public resources.
- Fostering private sector growth to create more jobs and stimulate economic activity.
The funding structure will see about three-fourths of the $20 billion provided through concessional loans from the World Bank’s International Development Association (IDA), while the remaining funds will come from the International Bank for Reconstruction and Development (IBRD). The International Finance Corporation (IFC) will also contribute additional support.
Specific targets within the CPF include providing clean water and sanitation to 60 million people, strengthening food security for 30 million individuals, delivering healthcare services to 50 million people, and increasing access to family planning services for 30 million women by 2035.
To ensure accountability, the World Bank has outlined a robust monitoring and evaluation framework, with a mid-term review scheduled for fiscal year 2030. Annual updates and a dedicated data lab will track progress, particularly in gender-related outcomes.
This partnership is also strategically aligned with Pakistan’s national development priorities, including the Planning Commission’s 5E Framework, which emphasizes sustainability, economic growth, and social welfare.
With a focus on reducing poverty, addressing climate vulnerabilities, and creating economic opportunities for millions, the World Bank’s $20 billion CPF marks a significant step toward a more sustainable and prosperous future for Pakistan.
