Pak PM credits Army chief Gen Munir as World Bank announces $20 billion funding plan

In 2023, Pakistan narrowly averted a debt default thanks to a $3 billion bailout from the International Monetary Fund

Pakistan’s Prime Minister Shehbaz Sharif on Wednesday thanked its Chief of Army Staff (COAS) General Asim Munir after the country entered into a ten-year agreement with the World Bank, which will see $20 billion (€19.4 billion) worth of loans to support its struggling economy.

For the last few years, the South Asian country has faced an ongoing economic crisis and is presently supported by a $7 billion bailout package from the International Monetary Fund (IMF).

PM Shehbaz Sharif said in a post on social media platform X that a new plan known as the Country Partnership Framework announced by the World Bank overnight would focus the global institution's pledge of $20 billion in areas including clean energy and climate resilience in the ten years from 2026.

“I deeply appreciate the efforts of General Asim Munir and my colleagues who have worked day and night to strengthen Pakistan’s foundation for such transformative partnerships,” he wrote.

“CPF reflects the World Bank’s confidence in Pakistan’s economic resilience and potential. We look forward to strengthening our partnership as we align our efforts for creating lasting opportunities for our people,” Sharif added further.

The World Bank said in a statement that policy and institutional reforms to boost private sector growth and expand fiscal space for government investment in crucial areas would also be key.

"We are focused on prioritising investment and advisory interventions that will help crowd-in much needed private investment in sectors critical for Pakistan's sustainable growth and job creation, including energy and water, agriculture, access to finance, manufacturing and digital infrastructure,” said Zeeshan Sheikh, the World Bank's International Finance Corporation Country Manager for Pakistan and Afghanistan in a statement.

In 2023, Pakistan narrowly averted a debt default thanks to a $3 billion bailout from the International Monetary Fund. A subsequent $7 billion loan agreement with the IMF last year helped stabilise the economy, with weekly inflation falling from 27% in 2023 to 1.8% last week. Prime Minister Sharif has vowed to reduce the country's reliance on foreign loans in the coming years.