$20bn CPF an indicative figure: World Bank

ISLAMABAD: The World Bank’s pledge of $20 billion for Pakistan under the Country Partnership Framework (CPF) is an indicative figure and the decision of how much for which project will be driven by pace of structural reforms to reach this target.

This was stated by Najy Binhassine, World Bank country director for Pakistan while addressing at the launch of the Pakistan Country Partnership Framework (FY2026-2035), which was also addressed by Martin Raiser, Vice President for South Asia, World Bank, Secretary Economic Affairs Division and Zeeshan Sheikh, country manager for Afghanistan and Pakistan the International Finance Corporation (IFC).

It is very difficult to estimate that how much can be allocated for which project, but the pace of structural reforms as well as jointly work with the authorities would define it, he added.

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A mid-term review in fiscal year 2030 will allow to course-correct and decide whether to extend the CPF period to 10 years. Implementation will be supported by two-year rolling business planning with the government, which will define the project pipeline and knowledge investments in support of reaching the 10-year targets. These will be updated on a yearly basis.

The proposed CPF would run up to 10 years—with a Performance and Learning Review (PLR) in fiscal year 2030, even before if needed and is anchored around six outcomes focused on Pakistan’s most critical development needs.

Replying to a question about political instability and outcome of the programme, the country director said that it targets six focused country outcomes, all of which enjoy strong support across the political spectrum.

The country director said that an “IF and THEN” approach to drive ambition and instrument selection— areas where government commitment, policy reforms, and implementation progress will be prioritised for scale-up.

Support for policy reforms that boost private-led growth and create fiscal space to durably finance the investments needed to address these challenges will remain key to our engagement in partnership with the International Monetary Fund (IMF), the Asian Development Bank (ADB), and others.

“Our new decade-long partnership framework for Pakistan represents a long-term anchor for our joint commitment with the Government to address some of the most acute development challenges facing the country: child stunting, learning poverty, its exceptional exposure to the impacts of climate change, and the sustainability of its energy sector,” said Binhassine, adding that support to policy and institutional reforms that boost private sector-led growth and create fiscal space to finance the investments needed to address these challenges will remain key in our engagements.

The World Bank, IFC and the Multilateral Investment Guarantee Agency (MIGA) have jointly identified six areas of joint engagement to foster private investment that contribute to CPF outcomes. Joint Engagement Plans (JEPs) will coordinate solutions to unlock private investment in specific sectors, starting with: Energy, water, agriculture, digital, transport, and financial inclusion.

With 10-year targets driving strategic programming, the data and monitoring and evaluation (M&E) agenda will be core to this CPF, including via setting up a Pakistan Data and M&E Lab, with a special focus on impact evaluation of key operations, particularly regarding gender outcomes. The business planning process will incorporate global knowledge to support analytics, implementation, and just-in-time advisory.

VI. Leverage: Impacting these country outcomes will require more resources than are available through the WBG alone. Leveraging private capital and sources of blended finance will be key, as will be increased co- and parallel financing with other development partners around key outcomes. The longer focus of the CPF aims to encourage other partners to join outcome-specific country platforms.

He further said that digital is 100 percent enabler and facilitator for development, which exists huge potential, besides improving quality of services.

Raiser said that Pakistan stands at a pivotal moment, with an ambitious program of reforms on the move, macroeconomic stabilisation clearly taking hold and, importantly, the government recent launch of its National Economic Transformation Plan, URAAN Pakistan, laying the groundwork for a sustainable and inclusive growth recovery.

The new CPF that was launched is therefore very timely. It is strategically designed to complement and support the government’s efforts, ensuring alignment with its priorities to address the country’s most pressing challenges. This partnership fosters a unified and focused vision for Pakistan, around six outcomes with clear, tangible and ambitious 10-year targets we jointly aim to reach, Raiser said.

“Our new partnership adopts a long-term perspective because selectivity and consistency of our engagement over an extended period is needed to impact country outcomes such as addressing child stunting and learning poverty, enhancing climate resilience, transitioning to cleaner energy, or improving air quality. This document will indeed serve as a long-term anchor for our joint commitment to address key country development needs, in alignment with the government’s priorities, and for the benefit of the people of Pakistan”, he added.

But the World Bank resources will not be enough to reach our joint ambitions. The CPF approach aims to crowd in much needed private capital in underinvested parts of the economy—including with the support of our private sector arms the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). Unlocking private investment in priority sectors will require a mix of public and private sector solutions and enabling policy reforms, Raiser said.

He said that also, partnerships will be critical. More resources will be needed to have impact at scale which will require a close collaboration with other multilateral and bilateral development partners of Pakistan.

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