New CPF: Pakistan, World Bank agree to develop implementation framework
ISLAMABAD: Pakistan and the World Bank agreed to swiftly develop an implementation framework for effective implementation of the new Country Partnership Framework (CPF) to achieve the expected outcomes alongside solidifying a pipeline of projects for next two years.
Federal Minister for Economic Affairs, Ahad Cheema, held a meeting with Anna Bjerde, Managing Director for Operations (MDO) at the World Bank.
The minister and MDO discussed measures to improve operational effectiveness of the ongoing portfolio and prospective areas of WB's support in the context of the new CPF of WB for Pakistan.
Senior officers from both sides participated in the meeting.
The minister appreciated continued support of WB to complement Pakistan's development agenda. He also lauded the proactive support of WB's country office, especially the leadership and facilitation provided by Najy Benhassine, the outgoing country director for Pakistan.
The minister highlighted the remarkable economic turnaround achieved by Pakistan in a short span owing to Government of Pakistan's unwavering commitment to comprehensive economic reforms for achieving sustainable macroeconomic stability. The success of reforms and right direction of Pakistan's economic journey is validated by excellent progress on the ongoing Extended Fund Facility (EFF) as well as the recent upgraded credit rating by Fitch.
The MDO, WB appreciated the Government of Pakistan for successful engagement with IMF and encouraging signs of economic recovery. She appreciated the leadership of the Prime Minister and the Minister for steering the preparation of the CPF and identifying its priority areas with primary focus on human capital development.
She termed the CPF as a pioneering framework which would serve as a model for other members of WB.
Both parties agreed to swiftly develop an implementation framework for effective implementation of the CPF to achieve the expected outcomes alongside solidifying a pipeline of projects for next two years.
The minister asked WB to focus on social protection graduation programs for the provincial governments. He also highlighted the need to explore options and innovative approaches to reduce cost of energy generation to make it more competitive and affordable for the people.
The MDO assured WB's support and technical assistance on both the key areas.
The minister and the MDO agreed that the ongoing WB portfolio needs to lay a strong foundation for creating a more enabling environment for the private sector's enhanced contribution to the development process.
The meeting concluded on a positive note, with both sides expressing their mutual commitment to a results-driven partnership that contributes meaningfully to improving the lives of the people of Pakistan.
Copyright Business Recorder, 2025
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A May 31, Bloomberg published article 'OPEC+ agrees on third oil supply surge despite Russia's qualms' pointed out in this regard: 'OPEC+ agreed to surge oil output for the third month in a row despite reservations from key member Russia, doubling down on a historic policy shift that has sent crude prices sinking.…Officials say the supply hikes reflect Saudi Arabia's desire to punish over-producing members like Kazakhstan and Iraq, recoup market share lost to US shale drillers and other rivals, and satisfy President Donald Trump's desire for cheaper oil. …Oil briefly crashed to a four-year low under $60 a barrel in April after the Organization of the Petroleum Exporting Countries and its allies first announced that they would bolster output by triple the scheduled amount. …While Brent futures have since recovered to trade near $64 a barrel, the International Monetary Fund estimates the Saudis need prices above $90 to cover the lavish spending plans of Crown Prince Mohammed bin Salman. The kingdom is contending with a soaring budget deficit, and has been forced to cut investment on flagship projects such as the futuristic city, Neom.' Sustained macroeconomic stability and economic growth on the contrary require strong non-neoliberal, non-austerity based institutional, organizational, and market reforms. Structural reforms being suggested – in line with the traditional neoliberal, and over-board austerity-based outlook of the IMF – like seeing government as mainly reacting to market failures, and regulating loosely and, in turn, the direction of reforms pushing towards reducing government's footprint, rather than rationalizing its role, which could mean overall increasing its footprint if need be. While there are arguments on both sides of greater role of private sector in running the economy, that view has continued to sideline, especially in the wake of the misgivings that were exposed by the Global Financial Crisis 2007/08, and then in the wake of the Covid pandemic in the shape of lack of resilience created over decades under the neoliberal assault, along with little institutional provisions being placed under trade rules; for instance, to push for provision of vaccines as a global public good. Quite shockingly, such lessons have not been reflected through EFF programme thinking that continues to be the flagbearer of neoliberal thinking. Also, it is no hidden fact that the success of the Scandinavian countries or China for instance has been at the back of a strong state sector protecting the rights of its demos from the profit-motive excesses of the private sector by public sector playing a significant role in market creation, through adopting counter-cyclical policy framework, and in pushing towards greater productive and allocative efficiencies. Yet, without making anywhere near similar effort by the public sector, both in terms of improved institutional capacity, and providing needed levels of investment, there is a strong emphasis under the EFF programme to push for greater privatization, whereby the demos will be left virtually at the whims of private sector, given lack of capacity of the government to regulate private sector, at the back of years of under capacitation through lack of investment in education in general, and by following an ever-increasing practice of outsourcing more technical aspects of service delivery. Hence, this begs the question as to how can a government that has not properly run a certain affair like railways, or steel mills, has the capacity, and knowledge to regulate the private sector intoboth efficiently running these affairs, and also not jeopardize public welfare aspects by over-emphasizing profit interests? —To be continued Copyright Business Recorder, 2025
