LAHORE: Pakistan has the potential to achieve a 7% annual growth rate and transform into a trillion-dollar economy by 2035, according to Martin Raiser, Vice President for South Asia at the World Bank. Speaking on Pakistan’s economic reforms, Raiser highlighted the need for strong policies and a clear recovery plan to achieve this ambitious target.
In his statement, Raiser acknowledged that long-term projections could be challenging. However, he emphasized that with the serious implementation of domestic economic reforms, Pakistan could unlock its true potential. The World Bank has pledged $20 billion in financial assistance for the next decade, but the funding is tied to the country’s capacity for reform and its repayment ability.
“Pakistan has many capabilities that can attract foreign investment,” Raiser said, adding that the country must focus on factors within its control. Key reforms in areas like trade relations and investment policies are critical for sustainable economic growth, he stressed.
Raiser revealed that he had consulted representatives from various political parties and civil society to build consensus on economic plans. He reiterated that the $20 billion loan is “conditional and indicative,” depending on Pakistan’s ability to implement necessary changes.
The vice president also met with Finance Minister Muhammad Aurangzeb to discuss the World Bank’s support for tax reforms and a fiscal pact aimed at improving revenue collection and spending efficiency.
World Bank’s $20 Billion Funding Program
Last week, the World Bank launched the Country Partnership Framework for Pakistan, a $20 billion funding program running from FY26 to FY35. The initiative aims to address critical challenges such as economic instability, poverty, and climate change.
During the launch ceremony, Prime Minister Shehbaz Sharif called the program a “timely intervention.” Six key sectors, including clean energy, climate resilience, agriculture, and digital infrastructure, are being prioritized. Zeeshan Sheikh, International Finance Corporation’s Country Manager for Pakistan and Afghanistan, stated that the focus is on attracting private investment for sustainable growth and job creation.
The World Bank has already committed $17 billion to Pakistan through 106 ongoing projects. According to Raiser, reforms to boost private sector growth and create fiscal space for government investments in critical sectors are vital for Pakistan’s recovery.
Pakistan remains under a $7 billion International Monetary Fund (IMF) bailout program, which requires the government to enhance revenue collection and secure external financing. Much of this financing currently comes from loans provided by China and Gulf nations.
Economists believe that without comprehensive economic reforms, Pakistan will struggle to address its persistent economic crises. However, with proper planning, investment, and reform implementation, the country could achieve sustained growth and unlock its full potential.
