Pakistan is preparing measures to reduce regulatory and business constraints as the government and World Bank work on reforms aimed at improving investment, job creation and private-sector activity.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held talks with a World Bank delegation led by Country Director Bolormaa Amgaabazar in Islamabad on Friday. The meeting focused on economic reforms and their implementation.
The proposed World Bank growth and jobs operation includes measures to improve the investment environment, expand access to finance and increase productivity.
The World Bank has proposed reducing regulatory hurdles for businesses, improving access to financing for small and medium-sized enterprises (SMEs) and introducing export-finance products through the EXIM Bank of Pakistan.
The sides also discussed reforms to the Prime Minister’s Access to Finance initiative. These include a unified insolvency framework and legislation and regulations for factoring to help expand SME financing.
Reforms in pharmaceuticals, medical products and agriculture were also discussed. The proposed measures include changes to seed registration, deregulation of selected commodities and stronger international accreditation to help Pakistani businesses compete in global markets.
The government and World Bank also reviewed the National Tariff Policy and ongoing work on tariff reforms, including changes concerning the automotive sector. The focus is on improving competitiveness, productivity, investment and exports.
Tax reforms were another major area of discussion. The World Bank is supporting Pakistan in developing its Medium-Term Revenue Strategy and improving revenue-policy modelling.
The meeting also covered efforts to harmonize GST rules and classifications for services, improve coordination between the federal and provincial governments and strengthen tax data sharing.
Agricultural income tax reforms and provincial property-tax reforms were also reviewed, including digital registration and payment systems and steps toward more market-based property valuations.
The two sides discussed plans to develop Pakistan’s domestic capital markets, improve public-sector efficiency and strengthen domestic debt markets.
Aurangzeb emphasized the need to focus on implementation rather than simply designing reforms, with practical measures that can improve economic activity, investment, employment and the business environment.
The government and World Bank agreed to continue working together on structural reforms, institutional strengthening, private-sector-led growth and more efficient management of public resources.
