Post by : Anis Farhan

Photo: AP

The World Bank has announced a major change in its organisational structure, affecting its South Asia operations. In a decision that reflects both operational priorities and broader regional strategies, the Bank has moved Pakistan and Afghanistan out of the South Asia region. These two countries will now fall under the Middle East and North Africa (MENA) region for the purposes of development oversight and funding support.

At the same time, the World Bank has appointed Johannes Zutt as its new Vice-President for South Asia. This change in leadership comes as the Bank seeks to streamline its work and better align with the evolving needs of countries in the region. Zutt, who will take over from Martin Raiser on July 1, brings more than two decades of experience at the World Bank. His career includes leadership roles in Brazil, Bangladesh, Turkey, and several countries in Africa.

The shift of Pakistan and Afghanistan into the MENA region is seen as a move to better coordinate development efforts in countries that share similar challenges. Both nations face security concerns, political instability, and economic hurdles that mirror those in many MENA countries. According to senior officials, the change is administrative and does not signal any reduction in funding or support for Pakistan or Afghanistan. Instead, the aim is to ensure that the Bank’s work is more effectively managed and adapted to the specific needs of these countries.

With Pakistan and Afghanistan now under MENA, the South Asia region will focus on India, Bangladesh, Bhutan, Nepal, Sri Lanka, and the Maldives. This will allow the Bank to sharpen its focus on development priorities in these countries. The decision is also aligned with the Bank’s ongoing efforts to decentralise its operations and bring decision-making closer to where projects are being implemented.

Johannes Zutt will now oversee a portfolio of around $39 billion spread across these six countries. India remains the largest recipient of World Bank funding in South Asia, with over 80 active projects valued at more than $18 billion. The Bank’s work in the region includes support for infrastructure, health, education, climate resilience, and job creation.

Zutt expressed his enthusiasm about returning to South Asia. He noted that he has seen the region’s remarkable progress over the years and looks forward to helping countries achieve their development goals. He also highlighted the importance of building resilience against climate change, improving human capital, and mobilising private investment.

The decision to reorganise regional operations comes at a time when the Bank is responding to calls for greater efficiency and better alignment of its work with regional realities. There has also been growing attention on how multilateral institutions like the World Bank can support countries facing multiple challenges — from poverty to political instability and environmental threats.

For Pakistan and Afghanistan, joining the MENA group could mean closer coordination with countries that face similar issues, such as Yemen and Syria. It may also influence how projects are planned and monitored, as MENA countries often work in fragile and conflict-affected settings.

In summary, the World Bank’s restructuring is intended to help it serve countries more effectively, respond faster to their needs, and ensure that development assistance makes a greater impact. With Zutt at the helm in South Asia and Pakistan and Afghanistan transitioning to MENA oversight, the Bank is signalling a renewed commitment to addressing the unique needs of each country in a focused and flexible way.