World Bank warns $20bn support insufficient, urges Pakistan to mobilise more resources

The World Bank’s Vice President for South Asia, Martin Raiser, has cautioned that the $20 billion pledged under the Country Partnership Framework (CPF) will not be enough to meet Pakistan’s ambitious 10-year development goals, stressing the need for additional resource mobilisation.

In a statement following his week-long visit to Pakistan, Raiser acknowledged the optimism surrounding the CPF but emphasised the country’s greater financial needs, particularly in human capital development. He urged Pakistan to attract private sector investment by improving its business climate, stating that the World Bank Group is ready to collaborate with private investors and development partners to secure further funding.

Najy Benhassine, the World Bank’s Country Director for Pakistan, echoed this sentiment, highlighting that the pledged funds represent just 0.5% of the country’s GDP per year. Speaking at a seminar hosted by the Pakistan Business Council (PBC), he said that Pakistan must rely on its own resources, private sector contributions, and international partnerships to drive long-term development.

Benhassine pointed out the country’s low spending on education, stating that Pakistan invests only half of what similar-sized economies allocate to the sector. He warned that the nation’s high learning poverty—where three out of four children cannot read a basic text—poses a significant threat to sustainable economic growth. He further noted that one in three children is out of school, and only one in four girls aged 14 or 15 is enrolled in secondary education.

Beyond education, he underscored the recurring fiscal crises and inefficiencies in Pakistan’s energy sector, citing high losses and soaring prices as major obstacles to industrial growth and exports. He said the CPF aims to address these critical issues through a long-term development strategy.

Raiser also stressed that the success of the CPF will depend on effective collaboration between federal and provincial governments, enhanced revenue mobilisation, and improved efficiency in government spending. He met with Prime Minister Shehbaz Sharif and key cabinet members to discuss the implementation of the framework and broader economic reforms.

During the visit, the World Bank and the Pakistani government formally launched the CPF for FY2026-35, outlining six strategic focus areas with measurable 10-year targets. Raiser described the framework as an important step in the World Bank’s engagement with Pakistan, aligning with the government’s Uraan Pakistan National Economic Transformation Plan.

He expressed hope that these targets would serve as a foundation for consistent reform efforts to deliver tangible benefits to the Pakistani people. In meetings with top officials, including Deputy Prime Minister Ishaq Dar, Energy Minister Musadik Masood Malik, and Punjab and Khyber Pakhtunkhwa Chief Ministers Maryam Nawaz Sharif and Ali Amin Gandapur, Raiser discussed the immediate steps needed to translate the CPF into actionable development plans.

While acknowledging Pakistan’s progress in economic stabilisation, Raiser emphasised the urgency of policy reforms and decisive action to ensure sustained and inclusive growth over the next decade.

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