Key Points
- World Bank Group plans to mobilise up to $2 billion annually for Pakistan under its 2026-35 partnership framework.
- IFC is focusing on small and medium enterprises, which officials see as important for growth and job creation.
- Pakistan is preparing reforms to strengthen public-private partnerships and expand access to housing finance.
ISLAMABAD: Pakistan will have access to up to $2 billion a year in World Bank Group financing under a new 10-year partnership framework, with small businesses, public-private projects and housing finance identified as key areas for support.
The financing commitment was discussed on Friday when International Finance Corporation Regional Director Simon Andrews and World Bank Country Director Bolormaa Amgaabazar met Federal Minister for Economic Affairs, Senator Ahad Cheema.
Cheema welcomed the World Bank Group’s enhanced engagement with Pakistan and said the country’s priorities under the 2026-35 Country Partnership Framework include small and medium enterprises, public-private partnership projects and housing finance.
The meeting also focused on strengthening Pakistan’s public-private partnership framework and expanding access to housing finance.
Andrews expressed IFC’s interest in the country’s small and medium enterprise sector, while Cheema said the sector could play an important role in economic growth and employment creation.
Pakistan’s Private-Public Partnership Authority
Cheema said the government was taking steps to strengthen the Public-Private Partnership Authority, including plans to place it under the Privatisation Division and introduce new legislation to expand its role.
Under the proposed framework, the authority would help ministries develop and promote projects, mobilise financing and regulate projects implemented through it.
The IFC and World Bank representatives welcomed the government’s initiative to strengthen the public-private partnership framework.
READ ALSO: Pakistan and IFC Advance Execution of World Bank Group’s $40bn Pakistan Plan
On housing, Cheema said the government was working to help people build homes and improve access to housing facilities. He said institutional reforms were also being considered to strengthen housing finance.
The minister invited IFC to support efforts to expand housing finance and improve access to financing for people seeking to build homes.
Cheema also appreciated IFC’s technical assistance and financing for Pakistan and the World Bank Group’s wider contribution to the country’s development.
The World Bank’s country partnership framework
The World Bank’s 10-year Pakistan Country Partnership Framework Programme, a $20 billion sovereign fund, is combined with $20 billion in investments and financing for the private sector by the Group’s commercial lending arm, the IFC.
Prime Minister Shehbaz Sharif’s office explicitly described the new 2026-35 World Bank Group Country Partnership Framework as carrying an “unprecedented commitment of US$40 billion”. It says this comprises $20 billion in sovereign lending by IDA and IBRD, while IFC will mobilise another $20 billion for private-sector investment.
According to the World Bank’s official CPF page, the World Bank confirms that the framework covers FY2026-FY2035, with IFC as part of the World Bank Group programme and a specific outcome focused on increasing productive and inclusive private investment.
According to an IFC official statement, IFC Managing Director Makhtar Diop said in February 2025 that IFC’s aim was to invest $2 billion a year in Pakistan to support private-sector growth and mobilise additional capital.
Pakistan has been a member of the World Bank since 1950, with the Bank approving its first loan for railway rehabilitation in 1952. The partnership later expanded into water, agriculture, energy and infrastructure. The World Bank also played a central role in negotiations that led to the 1960 Indus Waters Treaty between Pakistan and India. Since 1950, the Bank has provided more than $51 billion in assistance to Pakistan.
The 10-year framework is expected to give Pakistan a longer-term financing platform for economic reforms, private investment and development projects
