$20b WB lending may be insufficient
ISLAMABAD:
The World Bank Vice President for South Asia, Martin Raiser, emphasised on Tuesday that the $20 billion lending will be insufficient to achieve the 10 years' development goals, and Pakistan will have to mobilise more resources to overcome its challenges.
In a statement issued after the week-long visit by Raiser to Pakistan, the regional vice president appeared to strike a balance between the optimism created by the $20 billion worth Country Partnership Framework and Pakistan's actual financing needs to overcome the human capital crisis.
"The World Bank Group's support will not be sufficient to achieve the ambitious targets set forth. Attracting private sector investment by improving the business climate is thus the need of the hour," said Raiser in a statement issued by the country office after the end of the visit.
He further added that the World Bank Group stood ready to work with the private sector and development partners to mobilise additional resources.
The $20 billion for 10 years is just 0.5% of the GDP for every year, and it is not that big and we have to be humble, said Najy Benhassine, the Country Director of the World Bank while speaking at the 'Dialogue on Economy' seminar organised by the Pakistan Business Council (PBC).
"The government's own resources, the private sector and different partners of Pakistan should pool resources for long-term planning and results," said Benhassine. He said that Pakistan spends half on education compared to what the countries with similar-sized economies spend on education.
The World Bank's country director added that there is no long-term growth and development when one out of three children are out of schools, one girl in four aged 14 or 15 is in secondary school and the learning poverty rate is 75%.
"Three out of four children cannot read a basic text," Benhassine said, warning that such outcomes preclude sustainable growth.
"It is difficult to grow when you have regular fiscal crises and an energy system with such high losses and high prices, which are impediments to industrial growth and exports," he said. "The CPF would address these issues."
The World Bank's VP also underscored that implementation of the Country Partnership Framework will additionally rely on the collaboration between federal and provincial governments, joint efforts to mobilise the necessary revenues and targeted measures to improve the efficiency of government spending.
During the visit, Prime Minister Shehbaz Sharif and Raiser officially launched the new Pakistan Country Partnership Framework for FY2026-35. The CPF outlines six strategic focus areas with tangible 10-year targets aimed at achieving long-term development.
"The World Bank Group's Country Partnership Framework marks an important evolution in our engagement. It is aligned with Uraan Pakistan, the government's National Economic Transformative Plan and focuses on six outcomes with clear, tangible and ambitious 10-year targets," said Raiser.
"We hope these targets serve as an anchor for consistent implementation efforts to ensure tangible results for the people of Pakistan," said the World Bank's VP.
Raiser met with the prime minister and several members of his cabinet to discuss the ongoing reform process and prepare the ground for implementation of the CPF over the next decade.
Raiser thanked the prime minister for his leadership of the reform agenda, acknowledged Pakistan's progress in economic stabilisation and discussed the policy reforms and specific actions needed to transition to sustained, inclusive growth and development. During his visit, Raiser met with Deputy Prime Minister and Minister for Foreign Affairs Mohammad Ishaq Dar, Minister of Energy and Minister of Water Resources Musadik Masood Malik, and Minister of State for Finance and Revenue Ali Pervaiz Malik.
Raiser also met Chief Minister of Punjab, Maryam Nawaz Sharif, and Chief Minister of Khyber-Pakhtunkhwa Ali Amin Gandapur with whom he discussed specific plans to begin implementation of the CPF.
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