Pakistan could become $1 trillion economy by 2035: World Bank Vice President

Dubai: Pakistan has the potential to become a $1 trillion economy by 2035, driven by a sustainable 7% annual growth rate, according to Martin Raiser, the World Bank's Vice President for South Asia.

In a recent statement, Raiser acknowledged the challenges of predicting long-term outcomes but emphasised that with the successful implementation of Pakistan’s domestic economic recovery plan, the trillion-dollar milestone is achievable.

Possible target

"Achieving this target is entirely possible, but it will require significant economic reforms and robust policy measures," Raiser noted. He further highlighted that the World Bank is committed to providing Pakistan with $20 billion over the next decade, contingent on the country's economic capacity and reform progress.

Raiser stressed that to maintain the 7% growth rate, Pakistan must focus on essential economic reforms, particularly those within its control. These include attracting foreign investment, improving trade relations, and bolstering institutional capacities, APP reported.

Building consensus

As part of the ongoing efforts, Raiser mentioned that he had engaged with representatives from various political parties and civil society in Pakistan to build a consensus on economic strategies.

He also clarified that the $20 billion funding from the World Bank is "conditional and indicative," based on Pakistan’s economic size and repayment ability.

World Bank's support

In a recent meeting with Finance Minister Muhammad Aurangzeb, Raiser discussed the World Bank's role in supporting Pakistan’s key economic and tax reforms, as well as implementing the fiscal pact aimed at improving revenue collection and spending efficiency.

The $20 billion funding was part of the World Bank’s broader initiative—its Country Partnership Framework for Pakistan (FY26–35)—launched just last week.

Pakistan Prime Minister Shehbaz Sharif described the framework as a "timely intervention" to help Pakistan address pressing issues such as economic instability, poverty, and climate change.

Six priority sectors

Raiser emphasized the World Bank’s ongoing support for Pakistan, focusing on six priority sectors under the 10-year framework. The funding will be directed towards clean energy, climate resilience, and the implementation of policy reforms to encourage private sector growth and expand fiscal space for government investment in key areas.

Private sector
"We are prioritising investments and advisory interventions that will help attract much-needed private sector investment in sectors critical to Pakistan’s sustainable growth and job creation," said Zeeshan Sheikh, the World Bank’s Country Manager for Pakistan and Afghanistan.

The World Bank's strategy includes investments in energy, water, agriculture, finance, manufacturing, and digital infrastructure, all vital for driving long-term economic growth in Pakistan.

Currently, the World Bank has about $17 billion committed to 106 ongoing projects in Pakistan. With the country grappling with an ongoing economic crisis, economists and international institutions have called for swift and bold reforms to stabilize the economy.

Pakistan is currently under a $7 billion bailout program from the International Monetary Fund (IMF), which requires the country to bolster government revenues and secure external financing, largely through loans from China and Gulf nations.