Islamabad: Pakistan and the World Bank (WB) here on Friday reviewed progress on the country’s ongoing economic reform agenda and discussed priorities aimed at promoting growth, job creation, fiscal management, revenue mobilisation, investment and institutional development.
The discussions took place during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and a World Bank delegation led by Country Director for Pakistan Ms. Bolormaa Amgaabazar.
The meeting covered implementation of reforms in areas including revenue mobilisation, capital-market development, trade and investment, public-sector efficiency and institutional strengthening.
The meeting reviewed WB’s support for Pakistan’s broader economic reform agenda, with particular emphasis on translating reform priorities into targeted, implementable actions and strengthening coordination among relevant ministries, provincial governments and implementing agencies.
The meeting discussed the proposed WB growth and jobs operation, including interventions aimed at improving the investment climate, access to finance, sectoral productivity and labour-market outcomes.
The bank outlined proposed measures relating to the investment framework, reduction of regulatory and business constraints, access to finance for SMEs, and development of export-finance products for the EXIM Bank of Pakistan to support incremental trade flows.
The discussion also covered reforms to strengthen the Prime Minister’s Access to Finance initiative, including a unified insolvency framework, factoring legislation and regulations to support SME financing, as well as measures to expand commercial financing and greater private-sector participation.
On sectoral reforms, the bank highlighted proposed interventions in pharmaceuticals and medical products, and agriculture, including improvements in seed registration, deregulation of selected commodities and strengthening of international accreditations to facilitate participation in international procurement and markets.
The meeting also reviewed initiatives to strengthen skills development and labour-market alignment, including improvements in the national vocational qualifications framework, greater international recognition of skills and development of formal overseas migration pathways supported by digital platforms.
National Tariff Policy and ongoing analytical support for tariff reforms, including work relating to the automotive sector and future tariff reforms were also discussed with emphasis on supporting competitiveness, productivity, investment, exports and Pakistan’s greater integration into global value chains.
On fiscal and revenue reforms, the meeting reviewed WB technical assistance to strengthen tax-policy capacity, including support for the Medium-Term Revenue Strategy and revenue-policy modelling. Discussions also covered GST harmonisation, including the alignment of rules, definitions and service classifications, stronger federal-provincial coordination, and improved data-sharing mechanisms.
The meeting reviewed progress on agricultural income tax reforms, including implementation of amended provincial laws and rules and digital systems for registration, filing and payment. The importance of strengthening compliance and federal-provincial data sharing was also discussed.
Provincial property-tax reforms, including efforts to improve and harmonise property-valuation approaches, strengthen digital systems and progressively move towards more market-based valuation frameworks were also discussed.
On domestic capital markets, the meeting discussed WB’s support for developing a roadmap for capital-market reforms through the Capital Markets Development Council, aimed at deepening domestic capital markets, broadening financing avenues and strengthening the ecosystem for investment and capital formation.
It also reviewed WB support for public-sector efficiency and the government’s rightsizing agenda, including technical assistance to strengthen institutional effectiveness and improve the efficiency of public resources.
World Bank’s analytical support on Pakistan’s sovereign credit profile and the pathway towards further rating improvements were also discussed.
The World Bank delegation also briefed the Finance Minister on analytical work on governance and institutional effectiveness, with discussions focused on practical and measurable reforms to strengthen government effectiveness, regulatory quality, transparency, accountability and the overall business environment.
Both sides reaffirmed their commitment to continued cooperation under the economic reform partnership, with a shared focus on implementation, institutional strengthening, private-sector-led growth, improved public-resource management, stronger investment and enhanced economic opportunities.
On the occasion, the finance minister underscored the importance of moving from reform design to effective implementation, with a focus on practical measures capable of delivering measurable improvements in economic activity, investment, jobs and the overall business environment.
He highlighted the importance of strengthening debt-management capacity and domestic bond markets.
He said, the government would work diligently to strengthen both the quantitative and qualitative drivers of sovereign ratings, including fiscal and debt sustainability, external buffers, sustainable growth, institutional effectiveness and continued structural reforms, while deepening engagement with relevant stakeholders to support further improvement in Pakistan’s sovereign credit standing.