The World Bank has approved $700 million in new financing for Pakistan as part of a multi-year programme designed to strengthen macroeconomic stability and improve public service delivery.
According to the lender, the funding will be provided under the Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), a framework that could ultimately extend up to $1.35 billion in support. Of the approved amount, $600 million is earmarked for federal-level initiatives, while $100 million will be allocated to a programme in Sindh.
The approval comes after the World Bank granted $47.9 million in August to enhance primary education in Punjab.
World Bank Country Director for Pakistan, Bolormaa Amgaabazar, said the country’s long-term growth depends on mobilising domestic resources and ensuring their transparent and effective use. She noted that the MPA would help federal and Sindh authorities deliver measurable improvements, including more reliable funding for schools and healthcare facilities, fairer taxation, and stronger data systems, while protecting key social and climate-related spending.
Lead Country Economist Tobias Akhtar Haque emphasised that rebuilding Pakistan’s fiscal foundations is critical for restoring economic stability and strengthening institutions. He said the PRID-MPA introduces a coordinated national reform agenda aimed at expanding fiscal space, boosting investment in human capital and climate resilience, and improving revenue administration, budgeting, and statistical capacity.
Under the federal component, the programme will focus on fairer revenue mobilisation, improved budget planning and execution, and enhanced data systems to support evidence-based policymaking. Planned measures include tax reforms, expansion of the Integrated Financial Management Information System and e-procurement platforms, targeted subsidy rationalisation, and strengthening the Pakistan Bureau of Statistics.
In Sindh, the initiative seeks to raise provincial revenues, speed up and make payments more transparent, and increase the use of data in provincial decision-making. The programme is also expected to improve financing for primary healthcare facilities and schools by making public resource allocation more equitable and responsive.
The approval follows concerns highlighted in an IMF-World Bank report released in November, which pointed to fragmented regulation, weak budgeting practices, and political influence as key obstacles to investment and revenue generation in Pakistan.
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