ISLAMABAD(National Times)- In what appears to be a push towards accelerating growth, the World Bank has advised Pakistan to move from stabilisation to sustainable growth, with a focus on strengthening investment and private sector activity.
This marks the second such endorsement from the international financial institution, which recently commended Pakistan’s stabilisation programme and urged a shift towards sustainable growth to generate employment opportunities for the youth. The IMF has also offered similar advice to Islamabad at a recent workshop on tax reforms.
World Bank Regional Practice Director for the Prosperity Vertical for the Middle East, North Africa, Afghanistan and Pakistan (MENAAP) Sandeep Mahajan met Finance Minister Muhammad Aurangzeb on Friday. He was accompanied by Country Director Bolormaa Amgaabazar and International Finance Corporation (IFC) Division Director Simon Andrews.
An official statement said the meeting discussed Pakistan’s economic reform agenda, the transition from stabilisation to sustainable growth and priorities for strengthening investment and private sector activity.
Mr Mahajan congratulated Pakistan on restoring macroeconomic stability and commended the government’s management of the recent crisis arising from regional conflict.
He noted that buffers built through stabilisation efforts and a timely policy response had helped Pakistan manage external pressures. World Bank representatives emphasised the importance of sustaining these gains through continued reforms and effective implementation.
Mr Aurangzeb said the government’s priority was to make macroeconomic stability durable and translate it into sustainable, investment-led and export-driven growth.
He said that Pakistan had regained access to international capital markets, including through its recent $3 billion Eurobond issuance with five-year and 10-year maturities.
The minister also stressed the need to secure further credit rating upgrades, strengthen investor confidence and improve Pakistan’s sovereign credit profile.
Mr Aurangzeb underscored the importance of a credible transition framework that maintained fiscal discipline, addressed external sector vulnerabilities and strengthened the foundations for private sector-led, responsible and sustainable growth.
The discussion also covered international experience in strengthening fiscal frameworks and policy credibility to manage external risks and support investor confidence.
Policy continuity was highlighted as another key requirement for sustained economic progress. The finance minister noted that investment and productivity depended on a predictable policy environment and consistent implementation.
Mr Aurangzeb and the World Bank representatives also exchanged views on the government’s growth and jobs agenda, including opportunities to strengthen private sector investment, improve the regulatory environment and mobilise financing for infrastructure.
The discussion covered privatisation, the importance of clear regulatory frameworks and credible post-privatisation arrangements, as well as the potential to develop infrastructure projects through appropriate financing structures and collaboration with development partners.
Both sides reaffirmed the importance of continued cooperation between Pakistan and the World Bank, with a focus on sustaining macroeconomic stability, advancing structural reforms, strengthening policy continuity and translating reform gains into investment, employment and improved economic opportunities.
