ISLAMABAD, May 2025 — Pakistan’s Prime Minister, Shehbaz Sharif, on Wednesday, welcomed a landmark agreement with the World Bank, under which the country will receive $20 billion in funding over the next 10 years. The funding, provided through the Country Partnership Framework (CPF), will be allocated to critical sectors such as renewable energy, education, and social welfare.
In a statement on the X platform, Prime Minister Sharif expressed pride in the agreement, calling it a testament to the World Bank’s confidence in Pakistan’s economic resilience and potential. He also highlighted the ongoing recovery of Pakistan’s economy, which had been on the brink of default in 2023. The country had narrowly avoided a financial collapse after securing a $3 billion bailout from the International Monetary Fund (IMF). Last year, Pakistan also reached a new $7 billion loan deal with the IMF, which has helped stabilize the economy, with inflation dropping significantly from 27% in 2023 to just 1.8% in recent weeks.
The World Bank’s funding for Pakistan will officially begin in 2026 and is expected to target some of the most pressing development challenges facing the country. The CPF focuses on improving the nation’s infrastructure and addressing critical issues such as child stunting, learning poverty, and the detrimental impacts of climate change. Additionally, the framework aims to support the sustainability of Pakistan’s energy sector, which has long struggled with inefficiencies.
Najy Benhassine, World Bank Country Director for Pakistan, emphasized the long-term nature of the agreement, describing it as an anchor for the joint commitment between the World Bank and Pakistan to tackle the nation’s development challenges. “This framework represents a collective effort to ensure the future stability and growth of Pakistan,” Benhassine said in his statement.
The deal arrives at a time when Pakistan is striving to overcome one of the worst economic crises in its history, heavily relying on loans from the IMF and other countries, including China, Saudi Arabia, and the United Arab Emirates. Prime Minister Sharif has vowed to reduce the nation’s dependence on foreign loans in the years to come, focusing on sustainable economic growth and development through strategic investments in key sectors.
This agreement signifies a significant step toward securing Pakistan’s economic future while addressing critical socio-economic and environmental challenges.
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