Talks focus on growth, jobs, revenue mobilisation, capital markets, trade, investment and institutional reforms
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held talks with a World Bank delegation led by Country Director Bolormaa Amgaabazar to review progress under Pakistan’s economic reform partnership and discuss priorities for implementation.
The meeting covered a wide range of areas, including economic growth, job creation, fiscal management, revenue mobilisation, capital-market development, trade and investment, and institutional reforms.
World Bank Backs Growth and Jobs Reforms
Aurangzeb stressed the need to move from reform planning to effective implementation, with measures that can deliver measurable improvements in economic activity, investment, employment and the business environment.
The World Bank outlined its proposed growth and jobs operation, including measures to improve the investment climate, reduce regulatory and business constraints, expand access to finance for small and medium-sized enterprises and develop export-finance products for the EXIM Bank of Pakistan.
The discussions also covered reforms under the Prime Minister’s Access to Finance initiative, including a unified insolvency framework, factoring legislation and regulations aimed at improving SME financing and expanding private-sector participation.
Sector-specific reforms in pharmaceuticals, medical products and agriculture were also reviewed. Proposed measures include improvements in seed registration, deregulation of selected commodities and stronger international accreditations to improve access to international procurement and markets.
Trade, Tariff and Revenue Reforms
The two sides reviewed implementation of the National Tariff Policy and ongoing analytical support for tariff reforms, including work related to the automotive sector.
The discussions focused on improving competitiveness, productivity and exports while supporting Pakistan’s integration into global value chains.
On revenue reforms, the World Bank’s technical assistance for the Medium-Term Revenue Strategy and revenue-policy modelling was reviewed. The meeting also discussed GST harmonisation, including alignment of rules and classifications for services, stronger federal-provincial coordination and improved data sharing.
Progress on agricultural income tax reforms was also reviewed, including implementation of amended provincial laws, digital registration, filing and payment systems, and measures to strengthen compliance.
Provincial property-tax reforms were another area of discussion, with efforts focused on improving property valuations, strengthening digital systems and gradually moving towards more market-based valuation frameworks.
Capital Markets and Public-Sector Efficiency
The meeting discussed World Bank Group support for a roadmap for capital-market reforms through the Capital Markets Development Council. The initiative aims to deepen domestic capital markets, broaden financing options and strengthen the investment and capital-formation ecosystem.
The finance minister also highlighted the importance of strengthening debt-management capacity and domestic bond markets. Discussions included financial instruments for managing market risks, domestic bond-market development and improving investor-relations capacity.
The World Bank’s support for public-sector efficiency and the government’s rightsizing programme was also reviewed, including technical assistance aimed at improving institutional effectiveness and the use of public resources.
Sovereign Credit Profile and Institutional Reform
The two sides discussed analytical support on Pakistan’s sovereign credit profile and measures that could contribute to further improvements in the country’s credit standing.
Aurangzeb said the government would focus on strengthening fiscal and debt sustainability, external buffers, sustainable growth and institutional effectiveness while continuing structural reforms and engagement with relevant stakeholders.
The World Bank delegation also briefed the minister on its analytical work on governance and institutional effectiveness, focusing on measurable reforms to improve government effectiveness, regulatory quality, transparency, accountability and the broader business environment.
Both sides reaffirmed their commitment to continued cooperation, with an emphasis on implementation, institutional strengthening, private-sector-led growth, improved public-resource management, investment and economic opportunities.