ISLAMABAD: Prime Minister Shehbaz Sharif told a visiting World Bank delegation on Monday that Pakistan prioritizes investment and partnership rather than loans, a statement from his office said weeks after the international financial institution announced supplying the country with $20 billion of loans.
Sharif met a delegation of nine executive directors of the World Bank, who are on a visit of the country to discuss its economic projects and investments, the Prime Minister’s Office (PMO) said. The Pakistani premier met the delegation with senior officials and members of his cabinet.
The delegation arrives in Pakistan after the World Bank last month announced supplying Pakistan with $20 billion of loans over the next decade. These loans are expected to be invested in nutrition, education and renewable energies in the hope of stimulating private-sector growth in the country.
Welcoming the delegation to Pakistan, Sharif acknowledged that the World Bank’s partnership with Pakistan spans seven decades. Various national projects that contributed to the country’s development were built through Islamabad’s partnership with the World Bank, he said.
“Instead of loans, investment and partnership are priority,” Sharif was quoted as telling the World Bank delegation in a statement released by the PMO.
The Pakistani prime minister pointed out that the country’s exports and remittances are both increasing, adding that low interest rates were causing investment in the manufacturing sector to increase.
Sharif said his government was working on digitizing the Federal Board of Revenue (FBR), Pakistan’s main tax collection authority, in its bid to control corruption. He also said that the government’s recent power reforms were ensuring uninterrupted power supply to many parts of the country.
The premier said that the World Bank’s Country Partnership Framework program for Pakistan will lead to an investment of $40 billion in the country, describing it as a “welcome development.”
“With $20 billion, a new chapter of development will open in Pakistan through various projects in health, education, youth development and other social sectors,” Sharif said.
The World Bank delegation appreciated Pakistan’s reforms in energy, industry, exports, privatization, revenue and other sectors, the PMO said.
The World Bank’s lending for Pakistan will start in 2026 and focus on six outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development and increasing private investment.
Pakistan nearly defaulted in 2023 on the payment of foreign debts and the International Monetary Fund (IMF) rescued it by agreeing to a $3 billion bailout.
Last year, Islamabad secured a new $7 billion loan deal from the IMF. Since then, the country’s economy has started improving with weekly inflation coming down from 27 percent in 2023 to 1.8 percent in January.
Pakistan Prime Minister Shehbaz Sharif has vowed to reduce dependence on foreign loans in the coming years.
