Page 9 - CMA Journal (May-Jun 2026)

E x c lus iv e I nt er v iew

ICMA: With GDP growth projected at around 3.0–3.2% To ensure uptake and political feasibility, the government
ICMA: How does Pakistan's inclusion in can adopt a phased approach, beginning with industries Genuine transformation
broader MENA economic dialogues through FY27, what structural reforms are most that have exibility to shift operations, while protecting
in uence its nancial governance urgent to break out of this low-growth trap? those with less adaptable processes. Successful requires much faster growth.
priorities, and what role can transparency Bolormaa Amgaabazar: Pakistan has stabilized its implementation will also require complementary The evidence from comparable
play in strengthening its bargaining measures: upgrading metering and billing systems and
power? economy, but stability alone will not deliver growth. countries is instructive: China,
Subsidies have been cut, in ation reduced, the exchange gradually reducing cross-subsidies through more
Bolormaa Amgaabazar: Pakistan's entry into rate liberalized, and revenues increased. The IMF program transparent and targeted mechanisms. Indonesia, and South Korea
the MENA economic community strengthens is now on track. Private investment is beginning to return.
its access to trade, remittance, and investment But this is not su cient for sustained growth. Breaking ICMA: With gas sector circular debt at Rs. 2.6 trillion were all once poorer than
ows. Existing trade links can be deepened. out of the low-growth trap requires a focused set of and repeated delays in unbundling SNGPL and SSGC,
Remittance ows from the Middle East are how can reforms be structured to move beyond policy Pakistan.
already a vital income source and can grow structural reforms. intent toward e ective execution that reduces losses
further. There is clear potential to expand Trade: Trade reform must continue. Implement tari and builds a competitive, sustainable energy market?
nancial and investment ties. The region also
faces shared challenges: governance gaps, reforms to boost exports and reduce input costs. Bolormaa Amgaabazar: Firstly, it is encouraging to note standards will remain limited. Over recent years, 70
demographic pressures, and the need for Tax: The tax base must broaden. Only around 7 million that the ow of circular debt has been arrested, with the percent of Pakistanis have seen their real incomes fall
faster, more inclusive growth. Government actively developing a plan to address the despite positive headline growth.
people le taxes in a country of 250 million, leaving the
In any new relationship, credibility matters. system distortionary and compliance weak. Coordinated exibility to focus resources toward sectors where existing stock in the gas sector. Our team has helped the Genuine transformation requires much faster growth. The
government in developing the circular debt monitoring
Demonstrating transparency and institutional federal and provincial action, including property and government commitment is strong and reform momen- evidence from comparable countries is instructive: China,
integrity strengthen Pakistan's credibility and agriculture taxes, is essential. Business regulation must be tum is real, and to move away from areas where the policy tool. While important progress has been made, the scale Indonesia, and South Korea were all once poorer than
position as a partner. The World Bank is simpli ed, with the current environment actively context is less conducive. of the circular debt underscores the depth of the Pakistan. Through sustained commitment to
actively supporting this through technical deterring investment. underlying challenges and the need for sustained reform. macroeconomic stability, export orientation, private
work on nancial and budgetary transparency ICMA: The government is preparing a new Time of Use Moving from policy intent to e ective implementation investment, human capital, and e ective government,
and public sector governance reform. Energy: Reduce energy costs through private (ToU) tari structure to encourage daytime industrial will require sustained political commitment and they achieved decades of 7–8 percent growth that
ICMA: With climate-resilient investment participation and a shift toward renewables. operations. How can this reform be designed to coordinated action across institutions. Delivering fundamentally transformed living standards.
needs projected at $565.7 billion by 2030, Finally, the scal relationship between federal, provincial, balance energy e ciency, industrial competitiveness, meaningful outcomes such as reducing losses, enhancing Pakistan has the potential to do the same. The CPF is
how can Pakistan use IFRS S1 and S2 and scal sustainability? competitiveness, and building a sustainable energy
disclosures to attract private capital and and local governments must be better aligned so that market will require commensurate structural and designed to support that path through nancing,
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close the nancing gap? resources, responsibilities, and accountability are proper- Bolormaa Amgaabazar: The ToU tari structure that is operational reforms in this critical sector of the economy. technical assistance, and access to global knowledge and
ly aligned. under preparation should be designed around a carefully experience. But the pace and depth of reform will
Bolormaa Amgaabazar: International calibrated rebalancing of xed and variable charges to Encouragingly, as seen in the power sector, there is ultimately determine whether Pakistan achieves growth
investors (pension funds, green bond buyers, ICMA: What governance safeguards will the World send e cient consumption signals while preserving growing commitment at the highest levels to drive a that is genuinely transformative.
climate-focused private equity) can only Bank emphasize to ensure CPF resources are not dilut- utility revenues. Tari signals must be clear, predictable,
deploy capital where they can reliably assess ed by rent-seeking or weak accountability mecha- fundamental shift in gas sector performance as well
and compare risks. Adopting IFRS S1 and S2 nisms? and credible to guide business decisions, encourage through unbundling of the gas distribution companies. The Editorial Board thanks Ms. Bolormaa Amgaabazar, Country
provides a single globally recognized productive demand, and improve utilization of existing We have been supporting the Government by sharing Director for Pakistan, The World Bank, for sparing her precious time
to give an exclusive interview Chartered Management Accountant
framework, giving investors the comparability Bolormaa Amgaabazar: The World Bank safeguards are generation and network capacity. global good practices to drive this sector restructuring Jounral.
they require. strong, including procurement oversight, environmental This balance is particularly critical in Pakistan, where e orts; while ensuring they are carefully adapted to

Clear disclosure of how climate risks a ect and social safeguards, and grievance redress industrial growth and power-sector performance are Pakistan’s institutional and economic context that can
reduce ine ciencies, strengthen sector performance, and
nancial performance builds investor mechanisms. Beyond this, we are supporting the closely interlinked. The design should account for lay the foundation for a more competitive and nancially
con dence and lower the cost of capital for government in strengthening its own institutional di erences in operating patterns across industries, while
green investments. capacity, including e-procurement rollout and expansion ensuring that the bene ts do not come at the expense of sustainable gas market.
of nancial management information systems. ICMA: How does the World Bank assess Pakistan's
The World Bank is already helping Pakistan the sector’s nancial sustainability. Lower variable
build this foundation. We are supporting the But systems alone are not enough. Impact ultimately charges during solar-rich daytime and other o -peak economic outlook, and what role can the CPF play in
State Bank of Pakistan on environmental risk depends on sustained government commitment to hours can improve industrial competitiveness by shifting the trajectory toward resilience and inclusive
assessment, helping develop the National reducing production costs. growth?
Climate Finance Strategy launched at COP29 reform. The CPF is therefore designed with deliberate
in Baku, and establishing a dedicated green Bolormaa Amgaabazar: Pakistan is returning to growth
nancing institution in Punjab. Adopting of around 4 percent- but this is not enough. With
global disclosure standards is what makes population growth at 2.5 percent, gains in living
these ambitions nanceable.

ICMA’s Chartered Management Accountant, May-Jun 2026 7