In Islamabad, on Monday, the Caretaker Prime Minister Anwaar-ul-Haq Kakar held a meeting with Najy Benhassine, the Country Director for Pakistan at the World Bank Group.
This meeting occurred at a time when Pakistan faces numerous economic challenges. The South Asian nation is navigating a challenging journey toward economic recovery under a caretaker government, following the approval of a $3 billion loan program by the International Monetary Fund (IMF) in July, which averted a sovereign debt default.
However, meeting the conditions for the IMF loan, including reforms, has complicated the task of managing inflation and the depreciation of Pakistan's rupee. Recent weeks have seen nationwide protests due to record-high electricity and fuel prices. The relaxation of import restrictions and the removal of subsidies have contributed to annual inflation, reaching a record 38.0 percent in May.
Interest rates have also climbed, and the rupee has reached historic lows, with a 6.2 percent decline last month. In a statement from the Prime Minister's office after his meeting with Benhassine, Kakar emphasized the World Bank's role in developing underprivileged areas of Pakistan, especially remote regions like Balochistan.
He stated that the government's foremost priority is to promote development in these less-developed areas, similar to other parts of the country. Pakistan's economic challenges were further compounded by climate-related disasters, including record monsoon rains and glacier melting, which displaced around 8 million people and claimed at least 1,700 lives. This catastrophe, attributed to climate change, cost the economy $30 billion in damages. Many homes and kilometers of infrastructure still require reconstruction.
The Prime Minister acknowledged the World Bank's assistance in rehabilitating those affected by the 2022 floods and pledged administrative support to complete ongoing rehabilitation efforts in affected areas.