World Bank calls on govt to implement policy actions under $20bn reform partnership

The World Bank has urged the government to speed up policy measures tied to its $20bn reform partnership, according to Dawn. The actions cover aligning sales tax rules, revising provincial levies on farm income and property, and easing regulatory constraints, aimed at faster growth, stronger revenue collection and smoother trade and investment. The call came at a Friday meeting between Finance Minister Muhammad Aurangzeb and the bank's country director, Bolormaa Amgaabazar.

The 10-year framework covering 2025 to 2035 began in January last year and carries roughly $20bn in combined concessional and commercial lending. The partnership has now moved into its implementation phase, and both sides agreed to shift from designing reforms to delivering practical steps that can show measurable gains in activity, investment, jobs and the business environment. Proposals discussed included easier SME borrowing, new trade-finance instruments for the EXIM Bank of Pakistan, and changes in pharmaceuticals and agriculture.

Other topics covered domestic bond market development, capital-market reforms through the Capital Markets Development Council, and efforts to lift the sovereign credit rating. The finance minister said the government would work on the quantitative and qualitative factors shaping sovereign ratings, such as debt sustainability, foreign reserves and institutional effectiveness. The World Bank also briefed the minister on governance work covering regulatory quality, transparency and accountability.