World Bank calls for reforms to sustain Pakistan’s economic stability

The World Bank has called on Pakistan to sustain its economic stabilisation gains through continued reforms and effective implementation, as the country seeks to attract investment and shift towards sustainable growth, read a statement on Friday.

The development came during a meeting between Finance Minister Muhammad Aurangzeb and Sandeep Mahajan, Regional Practice Director for the Prosperity Vertical for the Middle East, North Africa, Afghanistan and Pakistan (MENAAP), World Bank, accompanied by Bolormaa Amgaabazar, Country Director, and Simon Andrews, Division Director, International Finance Corporation (IFC), to discuss Pakistan’s economic reform agenda, the transition from stabilisation to sustainable growth, and priorities for strengthening investment and private-sector activity.

Sandeep Mahajan congratulated Pakistan on restoring macroeconomic stability and commended the government’s effective management of the recent crisis arising from regional conflict.

He noted that the buffers built through stabilisation efforts and a timely policy response had helped Pakistan manage external pressures. The World Bank representatives emphasised the importance of sustaining these gains through continued reforms and effective implementation.

Aurangzeb emphasised that the government’s priority was to make macroeconomic stability durable and translate it into sustainable growth and investment-led, export-led.

He noted that Pakistan had regained access to international capital markets, including through its recent $3 billion Eurobond issuance with 5-year and 10-year maturities. He also mentioned ensuring a pathway for further credit rating upgrades. He highlighted the importance of building on this progress, strengthening investor confidence and improving Pakistan’s sovereign credit profile.

The finance minister discussed the importance of a credible transition framework that sustains fiscal discipline, addresses external-sector vulnerabilities and strengthens the foundations for private sector investment-led responsible and sustainable growth.

The discussion also covered drawing on international experience in strengthening fiscal frameworks and policy credibility to manage external risks and support investor confidence.

The meeting also covered policy continuity as a key requirement for sustained economic progress. Senator Muhammad Aurangzeb noted that investment and productivity depend on a predictable policy environment and consistent implementation.

The finance minister and the World Bank representatives 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, and 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.