The World Bank has urged Pakistan to accelerate private investment, stating that the current pace is far below the targets set under the country’s Country Partnership Framework (CPF) 2026–2035. The Bank also recommended adopting a system based on clear policy milestones and measurable outcomes to speed up reforms, including the effective use of technical assistance.
According to sources, a meeting was held yesterday under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb with World Bank Pakistan Country Director Bolormaa Amgaabazar, during which ongoing cooperation, priority sectors, and the framework designed for Pakistan were discussed. Under this framework, the promotion of private investment is the core pillar for significantly increasing Pakistan’s overall investment in the coming years.
The World Bank pointed out that policy and institutional weaknesses, excessive government control, inefficient subsidies, a complex tax system, trade barriers, and the dominance of state-owned enterprises are the biggest obstacles to investment, productivity, and export competitiveness in Pakistan.
According to available data, private investment in Pakistan has stagnated at around 10 percent of GDP, whereas in India and Bangladesh it ranges between 20 to 25 percent. Similarly, the share of exports has declined from 16 percent in the 1990s to around 10 percent today. The Bank noted that Pakistan has at least $60 billion in additional export potential, which can only be realized through comprehensive improvements in the business environment.
World Bank representatives briefed the Finance Minister on ongoing projects, fiscal reforms, and economic stabilization measures, and agreed that Pakistan has made progress toward stability through difficult decisions. However, it was emphasized that this economic stability must be transformed into sustainable growth, increased investment, and job creation.
The meeting also reached consensus on designing programs focused on improving the business climate, reforming state-owned enterprises, facilitating trade, expanding capital markets, and enhancing export competitiveness. The Finance Minister outlined the government’s priorities, highlighting tariff reforms, transparency, regulatory modernization, and institutional coordination.
Furthermore, discussions were held on technical and vocational training, aligning skills with labor market needs, and expanding overseas employment opportunities. Digital services, agriculture, minerals, health, and industry were identified as potential priority sectors for the future.
