The World Bank has highlighted that economic stability is beginning to take shape in Pakistan, creating a favorable environment for the signing of a long-term development agreement.
Under the recently introduced Country Partnership Framework, the World Bank plans to allocate $20 billion in development financing to Pakistan. This initiative, starting in 2026, aims to enhance key sectors such as clean energy and climate resilience, providing critical support to the nation’s economic growth.
In a video message shared on X, Najy Benhassine, the World Bank’s Country Director for Pakistan, emphasized the significance of this partnership. He stated, “This marks a pivotal moment in the collaboration between the World Bank Group and Pakistan. As economic stabilization takes root, Pakistan is embarking on new ambitions and long-term development plans that closely align with our priorities in the country.”
Benhassine further noted that the agreement represents a milestone commitment between the World Bank and the Pakistani government at both federal and provincial levels. He highlighted that the focus will be on six major development challenges that the country currently faces.
The planned funding will address crucial areas including improving education quality, combating child stunting, strengthening climate resilience, enhancing energy efficiency, promoting inclusive development, and increasing private-sector investment.
Meanwhile, Pakistan’s finance ministry has projected stable consumer inflation for February, continuing its downward trend from the previous year. The Consumer Price Index (CPI) recorded a significant decrease, standing at 2.4% in January, compared to 24% in the same period last year. Authorities have attributed this positive development to economic stabilization efforts under the IMF program implemented last summer.
Additionally, the report pointed out a rise in foreign remittances, a key contributor to Pakistan’s economy. The ministry noted, “Workers’ remittances recorded strong inflows of $20.8 billion during July-Jan FY2025, reflecting a 31.7% increase compared to $15.8 billion in the previous year.”
Furthermore, an International Monetary Fund (IMF) delegation is expected to visit Islamabad next week for the first review of Pakistan’s IMF facility. The finance ministry anticipates further improvement in the country’s primary surplus in the coming months, aligning with the IMF’s key benchmarks.
