In a significant move to bolster Pakistan's economy, the World Bank has greenlit a substantial financial package. The global lender has approved $700 million in financing for the country as part of a multi-year support initiative.
Details of the Financing Package
This funding falls under the World Bank's Public Resources for Inclusive Development — Multiphase Programmatic Approach (PRID-MPA). This broader initiative has the potential to provide Pakistan with a total of up to $1.35 billion. According to reports, the approved amount will be split, with $600 million allocated for federal programmes and $100 million dedicated to a provincial programme in Sindh.
The approval comes months after the World Bank granted $47.9 million in August to enhance primary education in Punjab, indicating a continued engagement with the country's development needs.
Focus on Fiscal Reforms and Service Delivery
World Bank officials emphasized that the program is designed to address core structural issues. Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, stated that Pakistan's journey toward sustainable growth requires mobilizing more domestic resources and using them transparently. She highlighted that the MPA aims to work with federal and Sindh governments to deliver tangible results like predictable funding for schools and clinics, fairer tax systems, and better data for policymaking.
Echoing this sentiment, Tobias Akhtar Haque, World Bank lead country economist for Pakistan, stressed that strengthening Pakistan’s fiscal foundations is critical for restoring macroeconomic stability. He explained that the PRID-MPA launches a nationwide approach to support reforms that expand fiscal space and bolster investments in human capital and climate resilience.
Addressing Systemic Challenges
The federal component of the program will specifically focus on raising domestic revenues more fairly, improving budget execution, and strengthening data systems. The goal is to directly increase public resources for inclusive development, leading to more equitable financing for primary healthcare and more funding for schools.
This intervention is timely, as a recent IMF-World Bank report, cited by Pakistan's finance ministry in November, pointed out that the country's fragmented regulation, opaque budgeting, and political capture are hindering investment and weakening revenue collection. The new World Bank financing aims to tackle these very challenges by promoting efficiency and accountability to ensure resources deliver better outcomes for the people of Pakistan.
