World Bank Group pledges up to USD2bn a year for Pakistan

The World Bank Group has pledged to mobilise up to USD2 billion annually for Pakistan over the next decade under its Country Partnership Framework 2026-35, a commitment the government wants to direct towards small and medium enterprises, public-private partnership projects and housing finance, among other priority areas. The pledge was discussed at a meeting on Friday between International Finance Corporation Division Director Simon Andrews, accompanied by World Bank Country Director for Pakistan Bolormaa Amgaabazar, and Federal Minister for Economic Affairs Ahad Cheema.

The meeting focused on ways to expand private-sector investment and strengthen development cooperation, particularly in sectors described by those present as capable of supporting economic growth, employment generation and improved access to finance. Andrews expressed the IFC's interest in expanding support for SMEs, while Cheema said the sector could play a critical role in driving growth and creating employment, and welcomed the IFC's focus on it.

On public-private partnerships, Cheema highlighted government efforts to accelerate PPP projects in collaboration with international development partners. He said the government was taking steps to strengthen the Public-Private Partnership Authority, including a proposed placement under the Privatization Division and the preparation of new legislation aimed at expanding its mandate. Under the proposed framework, the P3A would assist ministries in developing and promoting PPP projects, mobilising financing and regulating projects implemented through the authority. The IFC and World Bank representatives welcomed the initiative and expressed readiness to support viable projects.

Housing finance was another key area discussed. Cheema said the government was working to facilitate people in building their own homes and improving access to housing facilities, while also considering measures to strengthen the institutional framework for housing finance. He invited the IFC to support efforts to expand housing finance and enable more people to access financing for home construction, and appreciated the IFC's technical assistance and financing support to Pakistan as well as the wider contribution of the World Bank Group to the country's development.

The IFC and World Bank representatives welcomed the government's priorities in SMEs, PPP projects and housing finance, along with its focus on other development sectors, and reaffirmed their readiness to work with the government on viable initiatives through technical assistance and financing aimed at supporting quality development projects.