Aurangzeb stresses stronger federal oversight as World Bank backs reform push

Finance Minister Muhammad Aurangzeb has underscored the need for stronger federal oversight and tighter coordination with provinces to ensure effective implementation of structural reforms, as the World Bank reaffirmed its support for Pakistan’s reform agenda under the Country Partnership Framework (CPF).

The emphasis came during a meeting between Aurangzeb and World Bank Country Director for Pakistan Bolormaa Amgaabazar, in Islamabad on Wednesday, read a statement.

The meeting focused on strengthening cooperation under the World Bank’s CPF and advancing key reform priorities of the Government of Pakistan. Discussions covered broad areas, including population and human capital development, climate resilience, agriculture sector reforms, energy sector sustainability, and overall portfolio performance.

The finance minister emphasised the importance of effective operationalisation of the CPF, particularly in priority areas such as population management and climate change. “He underscored the need for strong coordination between federal and provincial governments to ensure coherence in policy design and implementation,” read the statement.

Aurangzeb highlighted that while implementation largely rests with the provinces, relevant federal ministries must remain fully engaged in planning, oversight, and monitoring processes to ensure national alignment and ownership.

Both sides exchanged views on enhancing institutional coordination, improving transparency in project design and target-setting, and strengthening monitoring mechanisms to achieve intended development outcomes.

The World Bank Country Director reaffirmed the WB’s commitment to working closely with both federal and provincial stakeholders and further enhancing information sharing and collaboration.

The meeting also reviewed progress in the agriculture sector, with particular emphasis on reforms aimed at improving productivity, value chains, access to finance, and private sector participation.

The finance minister stressed the importance of aligning provincial initiatives with broader national reform efforts to promote sustainable growth and job creation.

The World Bank expressed its readiness to continue supporting agricultural transformation efforts in collaboration with relevant stakeholders, including the International Finance Corporation (IFC).

Energy sector reforms and financial sustainability were also discussed, including options for strengthening the sector’s long-term viability. Both sides agreed to continue technical-level engagements to explore feasible solutions in line with Pakistan’s reform agenda and fiscal framework.

Bolormaa briefed the finance minister on overall portfolio performance and ongoing development operations, reaffirming the World Bank’s continued support for Pakistan’s economic stabilisation, climate resilience, and human capital development objectives.

Aurangzeb appreciated the World Bank’s partnership and reiterated the government’s commitment to advancing structural reforms, improving governance frameworks, and ensuring that development programs deliver tangible and sustainable benefits for the people of Pakistan.