World Bank approves $400 million loan for new projects in Punjab

Islamabad (Web Desk/Agencies): The World Bank’s Board of Executive Directors has approved $400 million to launch a major initiative aimed at providing safe water, sanitation, and basic hygiene services, while also boosting the capacity and financial efficiency of local urban administrations in Punjab.

Named the Punjab Inclusive Cities Program (PICP), the project will focus on upgrading and restoring water supply networks, sewerage systems, and wastewater treatment plants. It will also develop stormwater drainage infrastructure and strengthen local governments’ ability to deliver sustainable services and increase revenue across 16 secondary cities in the province.

The program, according to an official statement, will also work on improving solid waste management, including proper disposal of waste, to create cleaner and healthier urban spaces.

“Addressing child stunting is vital for Pakistan’s future. With the Punjab Inclusive Cities Program, we are investing in water, sanitation, and hygiene services to break the cycle of malnutrition and disease that prevents countless children from realizing their potential,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.

She highlighted that, in close partnership with the Punjab Government, the program represents a significant step toward modernizing urban infrastructure and strengthening local institutions, paving the way for healthier communities and a more prosperous nation.

The PICP is expected to deliver improved water, sanitation, hygiene, and drainage services to roughly 4.5 million residents, while better solid waste management will reach another 2 million people.

The initiative aims to lower healthcare costs by reducing waterborne illnesses, decrease child stunting, and empower local governments to provide more effective and sustainable services.

“The program combines physical infrastructure improvements with capacity-building and revenue enhancement, ensuring that the benefits are long-lasting,” said Amena Raja, Senior Urban Specialist at the World Bank. “It will also help cities in Punjab become more resilient to floods and droughts, promoting urban growth that is environmentally responsible and climate-ready.”

Gender inclusion is another key focus, with the program promoting women in leadership roles, establishing gender complaint desks, and offering specialized training to help female employees build new skills and advance in their careers. Community awareness campaigns will also encourage better hygiene practices at the household level to support overall public health.

The program is designed to attract private investment for water and sanitation services in Punjab’s secondary cities.

Aligned with Pakistan’s national development agenda, PICP complements existing provincial programs, including the Punjab Development Program and the Suthra Punjab Program.

It also marks the second phase of the World Bank-supported Pakistan Urban Water, Sanitation, and Hygiene Services Multiphase Programmatic Approach.