The Minister for Economic Affairs, Ahad Cheema, welcomed the delegation of Executive Directors (EDs) and Alternate Executive Directors (AEDs) from the World Bank Group (WBG). The Minister appreciated this third high level delegation from WB in a limited time, which reflects WB’s confidence in our vibrant and impactful ongoing economic reform process and its strong partnership with Pakistan. He added that this visit aims to enhance understanding of Pakistan’s economic, political, social, and governance landscape while exploring opportunities for future development support under the newly launched Country Partnership Framework (CPF) for 2026-2035.
Minister Cheema outlined the government’s priority to privatize State-Owned Enterprises (SOEs), recognizing that approximately one-third of these SOEs are strategic assets. He reiterated the government’s goal to privatize the remaining SOEs in phases. In the first phase, the government is focusing on the privatization of power distribution companies (DISCOS) , and in the second phase, Pakistan International Airlines (PIA) and other SOEs are to be privatized. The Minister shared that the government aims to privatize up to 50 SOEs over the next 3-4 years.
The Minister also emphasized the critical challenges currently faced by Pakistan’s power sector, including high tariffs for consumers, significant losses in line efficiency, and the ongoing efforts to achieve full cost recovery for the sector. He acknowledged that renewable energy resources and addressing line losses were among the main areas of focus for Pakistan’s energy strategy.
Highlighting the ongoing digitalization efforts, Minister Cheema stated that Pakistan is making significant strides in the digital transformation of its economy. He mentioned that comprehensive research and review of digitalization models had been completed, and the country is now advancing towards end-to-end digitalization of its institutions.
In response to a question regarding youth employment and women’s empowerment, Minister Cheema emphasized that the government is making substantial progress in both areas. Technical training programs for youth and women empowerment initiatives are running successfully, with adequate budgetary allocations to ensure their expansion. He added that training programs related to IT are going well, and we are one of the largest countries having trained freelancers.
The Minister also provided an update on Pakistan’s economic stability, pointing out that circular debt levels are low, and the currency is recovering thanks to the government’s effective measures. He highlighted that Pakistan’s economy is on a positive trajectory with increased Public Sector Development Program (PSDP) funding aimed at strengthening infrastructure and social development projects.
In their remarks, WB delegates commended the government of Pakistan for its commitment to reform and the remarkable progress made in addressing critical challenges. They expressed that World Bank’s strong support for Pakistan’s new CPF and affirmed that the World Bank remains steadfast in its partnership with Pakistan to help achieve its development goals. They also acknowledged the government’s comprehensive reform agenda and highlighted the importance of aligning efforts to address urgent needs such as climate change, governance, and gender equality.
Minister Cheema underlined the need to develop a comprehensive strategy to address the key implementation issues such as project preparation and readiness, procurements, land acquistion etc. to successfuly achieve the expected outcomes of the new CPF.
Minister Cheema expressed deep appreciation for the longstanding and unwavering support provided by the World Bank in Pakistan’s development journey. He highlighted the World Bank’s instrumental role in Pakistan’s socio-economic progress, particularly in the aftermath of the COVID-19 pandemic and the catastrophic 2022 floods.