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

During a meeting between Pakistan's Finance Minister Muhammad Aurangzeb and Sandeep Mahajan, the World Bank's Regional Practice Director for the Middle East, North Africa, Afghanistan and Pakistan, discussions revolved around Pakistan's economic reform agenda and the transition from stabilisation to sustainable growth.

Sandeep Mahajan praised Pakistan for restoring macroeconomic stability and commended the government's effective management of recent challenges stemming from regional conflict. He highlighted that the buffers built during the stabilisation phase and a timely policy response had enabled Pakistan to manage external pressures.

According to Mahajan, sustaining these gains would require continuous reforms and effective implementation. Aurangzeb echoed this sentiment, stating that the government's primary objective was to ensure the durability of macroeconomic stability and transform it into sustainable growth and investment-led, export-led development.

Pakistan had recently regained access to international capital markets, evidenced by its successful $3 billion Eurobond issuance with 5-year and 10-year maturities. Aurangzeb also stressed the importance of establishing a credible transition framework that would maintain fiscal discipline, address external vulnerabilities, and fortify the country's foundations for responsible and sustainable private sector investment growth.

The meeting also covered policy continuity as a crucial element for sustained economic progress. Both Aurangzeb and Mahajan emphasized the necessity of a predictable policy environment and consistent implementation for attracting investment and nurturing productivity.

The World Bank representatives underscored the significance of bolstering investor confidence through credible post-privatisation arrangements, developing infrastructure projects through suitable financing structures and collaborating with development partners, and improving the regulatory environment. Both sides agreed on the value of ongoing cooperation between Pakistan and the World Bank.