Of the World Bank-approved amount, $600 million will go for federal programmes and $100 million will support a provincial programme in Sindh. File
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The World Bank has approved $700 million in financing for Pakistan under a multi-year initiative aimed at supporting the country’s macroeconomic stability and service delivery, media reports said on Saturday (December 20, 2025).
According to the lender, 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 Dawn newspaper reported.
Of this amount, $600 million will go for federal programmes and $100 million will support a provincial programme in Sindh.
The approval follows a $47.9 million World Bank grant in August to improve primary education in Punjab.
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A separate statement issued by the lender quoted Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, as saying, “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.”
She said that through the MPA, the bank was 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”.
Tobias Akhtar Haque, World Bank lead country economist for Pakistan, said strengthening Pakistan’s fiscal foundations was “essential to restoring macroeconomic stability, delivering results and strengthening institutions”.
“Through the PRID-MPA, we are launching a coherent nationwide approach to support reforms that expand fiscal space, bolster investments in human capital and climate resilience, and strengthen revenue administration, budget execution and statistical systems,” he said.
“These reforms will ensure that resources reach the front line and deliver better outcomes for people across Pakistan with greater efficiency and accountability,” he added.
According to the statement, the federal component will focus on raising domestic revenues more fairly, improving budget planning and execution, and strengthening data systems for evidence-based decisions.
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, it added.
In November, an IMF-World Bank report, uploaded by the Finance Ministry, said the country’s fragmented regulation, opaque budgeting and political capture are curbing investment and weakening revenue.
Published – December 20, 2025 04:34 pm IST
