Islamabad (TDI): The World Bank announced on Friday that economic stabilization is “taking hold” in Pakistan, marking an opportune moment to sign a deal for a ten-year development plan.
The plan will focus $20 billion in development lending to Pakistan under the new Country Partnership Framework, which was announced last month.
The funding will be directed towards sectors such as clean energy and climate resilience from 2026 onwards.
Najy Benhassine, the World Bank’s Country Director for Pakistan, said in a statement that it is an important moment for the partnership between the World Bank Group and Pakistan as we engage on this journey at a special moment for Pakistan where stabilization is taking hold and there are new ambitions and new plans for development on the long term that are very aligned with the priorities of the World Bank Group in the country.
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He further said that this is a groundbreaking joint commitment with the Pakistan’s government both at the federal and provincial level to commit to focus on 6 of the most acute development challenges that the country is facing.
The World Bank’s lending will start next year, targeting 6 major areas: improving education quality, enhancing energy efficiency, fostering inclusive development, addressing child stunting, boosting climate resilience, and increasing private investment.
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Inflation has eased, with the Consumer Price Index (CPI) registering at 2.4 percent in January, compared to 24 percent during the same period last year.
The government has attributed this improvement to economic stabilization under the IMF program secured last summer.
