Prime Minister Shehbaz Sharif welcomed a $40 billion “investment” by the World Bank on Monday, stating that the inflow will open “a new chapter” in various sectors of the economy, according to a statement issued by his office.
According to the statement from Prime Minister House, PM Shehbaz welcomed a delegation of nine World Bank executive directors in Islamabad .
“Under the World Bank’s recent Country Partnership Framework, an investment of $40bn will be made in Pakistan, which is welcome,” the statement quoted the prime minister as saying.
“With the support of the World Bank, several major projects were built in Pakistan for national development and reconstruction, which played an important role in Pakistan’s development,” he added.
The PM further said that Pakistan benefitted from its partnership with the World Bank, as it provided support to the country in the aftermath of the devastating floods of 2022 and supported multiple development projects.
According to the statement, PM Shehbaz said that $20bn will be invested into Pakistan’s private sector under the International Finance Corporation, while $20bn will be used to open “a new chapter of development … in various sectors, including health, education, youth development and others”.
“I am grateful for the World Bank’s confidence in our government’s policies,” the PM said. “The country’s programme for institution and economic reform is progressing swiftly, while the economy is heading in the right direction.”
PM Shehbaz noted that there was still a way to go to achieve sustainable economic development, adding that any credit for the improvement must go to his team.
Members of the delegation appreciated Pakistan’s reform programme and noted that it was yielding positive results, calling it a “positive development”.
“Pakistan’s journey towards economic reform is progressing swiftly under the leadership of the Prime Minister,” the World Bank delegation was quoted as saying. The statement added that the delegation will discuss investments and economic development projects during their visit.
According to the statement, the PM apprised the delegation about the progress of Pakistan’s economic reforms, stating that there were positive developments.
“Our exports and remittances are increasing,” he said. “Investment in manufacturing has risen due to low interest rates and to control corruption, work on digitisation in the FBR (Federal Board of Revenue) is continuing on a priority basis.”
PM Shehbaz also added that in the power sector, the country has experienced an “uninterrupted power supply” alongside a deficit reduction.
The PM continued: “Through SIFC (Special Investment Facilitation Council), we have created an attractive environment for investors. This unique system involves all stakeholders.”
Separately, Prime Minister Shahbaz Sharif has appreciated the drop in inflation to single digits and expressed optimism about the further decline in the coming days.
Speaking to the media on Monday, he said that inflation had now dropped to single-digit levels and that the central bank’s markup rate had improved.
The premier also expressed hope that the inflation’s downward trend will continue in the near future. He acknowledged the difficult circumstances when his government took charge but said efforts were made to improve the economy.
He added that while some positive results were already visible, further efforts were required to strengthen the economy.
The government, PM Shehbaz said, had taken steps for improvement and was working to end the culture of favouritism. He emphasised that the government was committed to fixing the economy, although more work remains to be done.
He also added that the public is beginning to see the benefits of a healthier economy.
Criticising the culture of political divisions, the prime minister said that it “harms the country”. He accused the rival party, the Pakistan Tehreek-e-Insaf (PTI)-led government, of fostering an environment of hatred that negatively impacted the nation. He pointed out that political disputes breed hate, which is detrimental to national well-being.
