ISLAMABAD: Pakistan is poised to receive up to $40 billion in financing from the World Bank over the next 10 years under a new Country Partnership Framework (CPF). This initiative aims to foster sustainable economic growth and development through long-term financial commitments, marking a departure from past short-term agreements. The funding will be split equally between public-sector projects and private-sector initiatives via the International Finance Corporation (IFC), a World Bank affiliate.
According to a statement by The World Bank, this financial commitment is structured to address six critical areas, including reducing childhood stunting, enhancing early education, strengthening climate resilience, improving clean energy and air quality, increasing public spending on essential services, and boosting private sector investment. One of the program's most ambitious goals is to cut Pakistan's childhood stunting rate, currently at 40%, by nearly a third over the next decade.
The CPF, extending from 2026 to 2035, provides continuity in development efforts, ensuring resilience against political changes as long as economic policies remain consistent. The IFC's involvement emphasizes shifting investments from speculative ventures to sectors such as manufacturing, technology, and infrastructure to drive economic growth.
Beyond funding, the World Bank will offer technical assistance, advisory services, and analytical support to facilitate effective implementation. The program collaborates with the International Monetary Fund (IMF) under the Joint Domestic Resource Mobilization Initiative, which targets a 15% tax-to-GDP ratio. Although not directly tied to Pakistan's IMF bailout program, the CPF's success hinges on the country's economic stability and structural reforms.
A mid-term review of the program is planned within five years to evaluate progress and make necessary adjustments. This approach underscores a significant change in the World Bank's engagement strategy with Pakistan, focusing on long-term development and structural reform.