The World Bank has approved $700 million in financing for Pakistan as part of a multi-year programme designed to strengthen macroeconomic stability and improve public service delivery.
The funds will be released under the bank's Public Resources for Inclusive Development-Multiphase Programmatic Approach (PRID-MPA), which could provide up to $1.35 billion in total financing, the lender said.
Of this amount, $600 million will go for federal programmes and $100 million will support a provincial programme in the southern Sindh province.
The approval follows a $47.9 million World Bank grant in August to improve primary education in Pakistan's most populous Punjab province.
“Pakistan’s path to inclusive, sustainable growth requires mobilising more domestic resources and ensuring they are used efficiently and transparently to deliver results for people,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan in a statement.
“Through this MPA, we are working with the Federal and Sindh governments to deliver tangible impacts, more predictable funding for schools and clinics, fairer tax systems, and stronger data for decision‑making, while safeguarding priority social and climate investments and strengthening public trust,” she added.
The federal component will focus on raising domestic revenues more fairly, improving budget planning and execution, and strengthening data systems for evidence-based decisions.
“Strengthening Pakistan’s fiscal foundations is essential to restoring macroeconomic stability, delivering results and strengthening institutions,” said Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan.
In Sindh, the programme is expected to increase provincial revenues, enhance the speed and transparency of payments, and broaden the use of data to guide provincial decision-making.
"The programme will directly support the increase of public resources for inclusive development, including more equitable and responsive financing for primary healthcare facilities and more funding for schools," the WB press statement read.
