The World Bank has once again stepped in to help Pakistan’s struggling economy, approving $700 million in financing under a multi-year initiative. The funding approved on Saturday, intends to support macroeconomic stability and improve service delivery across the country. Of the total amount, $600 million will go to federal programs, while $100 million will be allocated to provincial programs in Sindh. This aid reflects the World Bank’s efforts to support Pakistan’s economic recovery.
Pakistan received this approval after the World Bank granted $47.9 million in August to improve primary education in Punjab. The $700 million in financial assistance will be provided under a multi-year plan aimed at improving Pakistan’s economic stability and government services. With the new funds, the program is expected to increase revenues, enhance the speed and transparency of payments, and expand the use of data to guide decision-making in Sindh province.
How the funds will be used
According to Dawn, Pakistan will receive the funds under the World Bank’s ‘Public Resources for Inclusive Development – Multi-Phase Programmatic Approach’ (PRID-MPA), which could provide up to $1.35 billion in total assistance. This support comes at a time when Pakistan urgently needs to strengthen its economy and improve public services. This fund will help Pakistan increase its domestic revenue and use it transparently. Under this plan, funding for schools and clinics will be secured, the tax system will be made fairer, and better data will be available for decision-making.
Significant aid for Pakistan
The World Bank’s country director for Pakistan, Bolormaa Amgaabazar, emphasised that Pakistan needs to mobilise more domestic resources to embark on a path of inclusive and sustainable development. It must ensure that these resources are used efficiently and transparently to deliver results for the people. “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.
Meanwhile, Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan, also stressed over strengthening Pakistan’s fiscal foundations to restore 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. These reforms will ensure that resources reach the frontline and deliver better outcomes for people across Pakistan with greater efficiency and accountability,” Haque said.
