World Bank approves $700 million financing for Pakistan

Islamabad (Web Desk): The World Bank has approved $700 million in financing for Pakistan under a comprehensive multi-year initiative aimed at strengthening the country’s economic stability and improving the delivery of public services.

The funding will support the Pakistan Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), a program designed to drive reforms at both federal and provincial levels to increase domestic revenue, enhance the quality of public spending, and leverage digital tools and data to improve services for citizens.

According to a World Bank statement received on Saturday, PRID-MPA is a pioneering program that aligns with ongoing fiscal reforms under the IMF-Extended Fund Facility program and the National Fiscal Pact.

The program is expected to provide up to $1.35 billion in total financing over its lifetime, with $600 million allocated to federal initiatives and $100 million specifically earmarked for Sindh. 
Disbursements will follow a results-based approach, releasing funds only after specific program objectives are met.

“Pakistan’s path to inclusive and sustainable growth depends on mobilizing domestic resources and ensuring that public funds are spent efficiently and transparently to deliver tangible results for people,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.

She emphasized that through PRID-MPA, the federal and Sindh governments aim to secure more predictable funding for schools and healthcare facilities, create fairer tax systems, strengthen data-driven decision-making, and safeguard critical social and climate investments, all while building public trust.

At the federal level, the program will focus on raising revenues more equitably, improving budget planning and execution, and strengthening data systems to support informed policymaking.

Key measures include reforming tax policies and administration, expanding the Integrated Financial Management Information System along with its linked e-procurement platform, implementing targeted subsidy reforms, and reinforcing the national statistical system led by the Pakistan Bureau of Statistics.

These steps are expected to enhance fiscal stability, create additional space for social and climate-related spending, increase transparency and efficiency, and improve essential public services.

“Strengthening Pakistan’s fiscal foundations is vital for restoring macroeconomic stability, achieving tangible results, and building stronger institutions,” said Tobias Akhtar Haque, Lead Country Economist for the World Bank in Pakistan. He added that PRID-MPA introduces a coordinated nationwide framework to support reforms that expand fiscal space, boost investments in human capital and climate resilience, and strengthen revenue collection, budget execution, and statistical systems.

These reforms are intended to ensure that public resources reach frontline services and deliver improved outcomes for citizens across the country with greater efficiency and accountability.

In Sindh, the program will help increase provincial revenues, speed up payments, improve transparency, and expand the use of data in decision-making.

The initiative will directly support inclusive development by ensuring more equitable funding for primary healthcare facilities and additional resources for schools, thereby enhancing service delivery and better responding to the needs of the population.