World Bank offers assistance to streamline Pakistan’s budget-making process

ISLAMABAD: The World Bank has offered Pakistani authorities technical assistance to enhance the budget-making process and adopt effective debt management mechanism.

The development came during a meeting between Federal Minister for Finance Muhammad Aurangzeb with Najy Benhassine, Country Director of the World Bank, and his team at the Finance Division on Tuesday.

According to a statement released by the Finance Division, Aurangzeb highlighted the importance of collaboration with the World Bank to support Pakistan’s economic reforms and development agenda.

The minister appreciated the World Bank’s financial and technical assistance across various sectors and reiterated the government’s commitment to fiscal discipline, sustainable growth, and efficient resource utilization.

“Discussions focused on the establishment of a robust and transparent tax policy framework to enhance revenue mobilization and improve compliance while ensuring equitable taxation,” read the statement.

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The World Bank team also offered “technical assistance to streamline the budget-making process, adopting modern practices to improve transparency and accountability in public financial management, an effective debt management mechanism to ensure fiscal sustainability and reduce risks”.

During the meeting, issues related to the Agricultural Income Tax Regime and GST harmonisation in coordination with provinces and enhanced focus on an active role of the National Tax Council also came under discussion, read the statement.

Najy Benhassine appreciated the government’s reform initiatives and assured continued support from the World Bank in key areas identified during the discussions.

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He reiterated the World Bank’s commitment to “assisting Pakistan in addressing economic challenges and achieving its developmental objectives”.

Meanwhile, Aurangzeb expressed gratitude for the World Bank’s support and reaffirmed the government’s resolve to implement reforms aimed at sustainable economic progress.

The Finance Secretary and senior officers of the Finance Division also attended the meeting.

Moreover, Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, emphasized on Tuesday that achieving economic stability is contingent upon political stability.

Talking to a private news channel, the minister highlighted the government’s repeated efforts to resolve political issues through dialogue.

He noted that multiple attempts were made in the past, including offering consultations on a proposed “charter of economy,” but these initiatives faced resistance.

“The founder of Pakistan Tehreek-e-Insaf (PTI) opted for a path of disruption rather than peace,” said Sheikh.

Minister stressed the urgent need to attract foreign investors, pointing out that the current political and security situation has deterred investment and severely impacted local businesses.

Sheikh also criticized PTI for organizing protests during key economic and diplomatic activities.

He reiterated the government’s commitment to fostering stability and creating an environment conducive to investment and growth. APP