WB pledges record $40 billion for Pakistan reforms | The Express Tribune

World Bank Group President Ajay Banga met Prime Minister Shehbaz Sharif in New York, where the premier hailed the Bank’s long-standing support to Pakistan, particularly during the COVID-19 pandemic and the devastating 2022 floods.

PM Shehbaz briefed Banga on the government’s comprehensive reform agenda covering resource mobilisation, energy-sector reforms, privatisation and measures to build resilience against climate change.

He said these reforms have steered Pakistan towards macroeconomic stabilisation, restored investor confidence and promoted sustainable, inclusive economic growth.

The prime minister expressed appreciation for the World Bank’s new Country Partnership Framework (2026–2035), under which the Bank has committed an unprecedented $40 billion for Pakistan.

He reaffirmed Pakistan’s commitment to ensuring its effective implementation in close coordination with provincial governments.

Read: Kashmiris’ right to self-rule non-negotiable, says OIC

Banga commended the reform measures underway and reaffirmed the Bank’s commitment to Pakistan’s development agenda, emphasising readiness to extend continued support for advancing economic reforms and long-term climate-resilience initiatives under the new CPF.

Both sides reiterated their resolve to further strengthen cooperation within the framework to advance Pakistan’s development priorities.

WB warns Pakistan’s growth model failing to cut poverty

The World Bank has warned that Pakistan’s economic growth model is failing to reduce poverty, with poverty levels surging to an eight-year high. In its report “Reclaiming Momentum Towards Prosperity”, the Bank said 25.3% of Pakistanis were living below the national poverty line in FY2023-24, up 7% in just three years.

On the international poverty line, the figure stood at a staggering 44.7%. It added that 42.7% of the aspiring middle class remains deprived of basic services such as clean water, sanitation, housing and affordable energy.

The report pointed to compounding shocks — including the 2022 floods that drove 13 million more people into poverty — as well as high inflation and weak public service delivery.

Rural poverty was recorded at 28.2% compared to 10.9% in urban areas, with Balochistan worst-hit at 42.7%. Punjab had the lowest rate at 16.3% but still accounted for 40% of the country’s poor due to its population size.

World Bank on X depicted the poverty trajectory

With 37% of youth out of work or education and female labour force participation stuck at 25.4%, the World Bank said Pakistan’s consumption-driven growth has left most households highly vulnerable.

It urged structural reforms, stronger private-sector development and measures to expand jobs and opportunities to protect hard-won poverty reduction gains.

Pakistan at the UNGA

PM is in New York from September 22–26 to lead Pakistan’s delegation at the 80th session of the United Nations General Assembly (UNGA), where he is focusing on Kashmir, Palestine, Gaza, regional security, climate change, terrorism, Islamophobia and sustainable development.

Pakistan raised the issue of Indian Illegally Occupied Jammu and Kashmir on the sidelines of the Organisation of Islamic Cooperation meeting during the United Nations General Assembly’s 80th session.

Read More: PM Shehbaz heads to New York to participate in 80th UNGA

In a Foreign Office statement, Pakistan—joined by Azerbaijan, Türkiye, Saudi Arabia and Niger—reiterated “unwavering support for the Kashmiri people’s inalienable right to self-determination.”

On the sidelines, he is attending meetings with the UN Security Council, the Global Development Initiative, and a Special High-Level Event on Climate Action, while also holding bilateral talks with world leaders and senior UN officials.

His participation, according to the Foreign Office, reaffirms Pakistan’s commitment to multilateralism and the UN.