Sri Mulyani Indrawati, Managing Director and Chief Operating Officer of the World Bank, on Saturday met Prime Minister Nawaz Sharif to discuss Pakistan's ongoing economic reform programme, including a stronger focus on private sector involvement and poverty fighting measures. During her one-day visit, Indrawati also met key Cabinet members, including Finance Minister Ishaq Dar and Minister for Water and Power Khawaja Asif, and Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi.
Indrawati recognised that despite a difficult economic situation, the government reforms are going in the right direction and are necessary to lead the country on a stable path to recovery. "Pakistan is facing a set of very tough challenges. We see good progress in the pace and quality of the government's action." Indrawati said. and added: "The increase in the country's reserves is a good sign. But what is critical now is to stay focused on the implementation of the reform program and create fiscal space to sustain social protection programs that support the poorest and most vulnerable people."
Successful reviews by the International Monetary Fund and the rapid implementation of initial reform actions are positive signs, Indrawati added, and the World Bank Group stands ready to help Pakistan through lending, private sector involvement and knowledge support. The use of $1.7 billion from IDA, the World Bank's fund for the poorest, is part of the Bank's support to the country. Target areas will be policy reforms in the energy sector, revenue mobilisation, governance, social sectors, and investment into hydropower. The World Bank's engagement in Pakistan will continue to be guided by its principle of selectivity, operational policy, and areas of comparative advantage.
Indrawati also welcomed Pakistan's role in regional co-operation, for example on power connectivity with neighbouring India, and the recently approved transformative power transmission project, Central Asia-South Asia (CASA-1000).
The development partnership between the World Bank and Pakistan has entered its seventh decade. More recently, the World Bank's engagement in Pakistan was focused on supporting education outcomes, development of hydropower and strengthening social safety net systems for the poorest and most vulnerable people.
The IFC, the Bank Group's private lending arm, has significantly ramped up its programme in Pakistan, especially in the energy sector by mobilising large international investors to support low-cost renewable power generation. It also supports improvements in the overall business environment and works on expanding access to finance for small businesses through capacity building and advisory services.-PR
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