The World Bank’s announcement of a $20 billion funding plan has sparked both hope and scepticism in a country overwhelmed by economic crises, political instability, and humanitarian challenges. For starters, a first-ever Country Partnership Framework signifies a shift in the priorities for international lenders as well as Islamabad. Although a bit late in the game, they might have recognised the shortcomings of the current development model, predominantly focused on infrastructure and feel-good growth.
While the coalition government may heave a sigh of relief, the financial commitment – promising, at first – does make one wonder: Would this latest bailout truly provide the transformative change our nation desperately needs, or is it just another band-aid?
For too long, Pakistan has been entrenched in a cycle of dependency on international lenders without addressing the systemic problems that plague its economy. A significant lack of oversight has allowed past development assistance to dissipate without producing meaningful results. Sadly, the political elite are often more worried about their self-interests than the welfare of millions, enabling the evasion of necessary reforms.
Moreover, the CPF sets ambitious targets, the most challenging of which seeks to raise tax revenue beyond 15 per cent of the GDP. With Pakistan already under a $7 billion IMF programme, which requires strict measures to boost government revenue, what line of action have the authorities come up with to overcome the issue of elite capture?
That the wheels have already been set in motion to launch a $250 million Green Impact Fund may partially respond to the emphasis on climate resilience and human capital development. While these priorities are indeed commendable, they highlight the contradictions inherent in Pakistan’s narrative. We confront the devastating effects of climate change daily – such as water scarcity, floods, and shifting weather patterns – yet how many more reports do we need to understand that immediate and proactive measures are essential?
It is not sufficient for any external institutions to simply demarcate funds; the Pakistani government must be held accountable for ensuring these resources are used effectively to build a resilient transition to renewable energy and strong water management systems. Only then can we move toward preventing crises rather than merely reacting to them. Without a commitment to reform governance, tackle corruption and promote inclusive growth, we will inevitably find ourselves back at square one, grappling with the same challenges that have persisted for decades. *