World Bank approves $700m loans to support Pakistan’s economy

Of the approved amount, $600 million will support federal programs, while $100 million is earmarked for provincial programs in Sindh.

World Bank approves
World Bank approves

ISLAMABAD: The World Bank (WB) has approved $700 million in loans to Pakistan under a multi-year funding initiative aimed at bolstering the country’s economy.

The financing will be disbursed through the World Bank’s Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), which plans to provide up to $1.35 billion in total funding. Of the approved amount, $600 million will support federal programs, while $100 million is earmarked for provincial programs in Sindh.

This follows the earlier approval of a $47.9 million World Bank grant in August, intended to enhance primary education delivery in Punjab.

“The initiative seeks to mobilize funds efficiently and transparently to deliver tangible results for people. It will ensure reliable funding for schools and clinics, equitable taxation, and improved data to guide policy-making, without compromising public and climate priorities,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.

Key federal reforms under this program include tax policy and administration improvements, expanded IFMIS and e-procurement systems, targeted subsidy programs, and development of the National Statistical System.

In Sindh, the funding is expected to increase provincial finances, enhance transparency, and promote informed decision-making.