World Bank Approves $700 Million Support to Strengthen Pakistan’s Economic Stability

Islamabad: The World Bank has approved $700 million in financial assistance for Pakistan under a multi-year program aimed at promoting economic stability and improving the delivery of public services.

According to the World Bank, these funds will be provided through the Public Resources for Inclusive Development (PRID) Multi-Phase Programmatic Approach, which could deliver a total of up to $1.35 billion in assistance. Of the approved amount, $600 million has been allocated for federal programs, while $100 million is designated for a provincial program in Sindh.

This approval comes shortly after a $47.9 million World Bank grant in August for improving primary education in Punjab.

In a separate statement, Bolorma Amgabarar, World Bank Country Director for Pakistan, emphasized the need to increase domestic resources and utilize them transparently and effectively to support sustainable and inclusive development. He noted that the PRID program works with both the federal and Sindh governments to achieve tangible results, including stable funding for schools and health centers, fair tax systems, strengthened data systems for better decision-making, and the protection of social and environmental priorities.

Tobias Akhtar Haq, Lead Country Economist for Pakistan at the World Bank, said strengthening Pakistan’s financial framework is essential for restoring economic stability, improving outcomes, and consolidating institutions. He added that the program will launch a coordinated national strategy to increase fiscal space, invest in human development and environmental sustainability, and strengthen revenue, budget execution, and statistical systems. These reforms aim to ensure that resources reach the public more efficiently and accountably.

At the federal level, the program will focus on fair increases in domestic revenue, improved budget planning and execution, and data-driven decision-making. Tax reforms, modern financial management systems, targeted subsidy reforms, and improvements to the national statistical system under the Pakistan Bureau of Statistics are key components.

In Sindh, the program will enhance provincial revenue, promote transparency and speed in payment systems, and encourage data-driven policymaking. The initiative also aims to directly support inclusive development by providing more equitable and effective funding for primary healthcare and schools.

The approval follows a joint IMF-World Bank report in November, which highlighted that Pakistan’s fragmented regulatory framework, lack of transparency in budgeting, and political influence are hindering investment and reducing revenue generation.