The World Bank has approved $700 million in fresh financing for Pakistan, providing a significant boost to the country’s efforts to stabilise its economy, improve public services, and strengthen fiscal governance.
The funding has been sanctioned under the Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), a multi-year framework through which Pakistan could receive up to $1.35 billion in total support.
How the $700 Million Will Be Used
According to the World Bank, the approved amount will be divided between federal and provincial programmes:
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$600 million for federal-level reforms
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$100 million for a provincial programme in Sindh
The initiative is designed to improve macroeconomic stability while ensuring that public resources are used more transparently and efficiently.
Focus on Fiscal Reforms and Public Services
World Bank Country Director for Pakistan Bolormaa Amgaabazar said the programme aims to help Pakistan mobilise domestic resources more effectively and channel them toward meaningful outcomes for citizens.
She noted that the reforms will support:
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More predictable funding for schools and healthcare facilities
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Fairer and more efficient tax systems
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Improved data-driven decision-making
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Protection of social and climate-related investments
The initiative also seeks to rebuild public trust by strengthening accountability in government spending.
Strengthening Economic Foundations
World Bank Lead Country Economist Tobias Akhtar Haque emphasised that improving Pakistan’s fiscal foundations is critical for long-term economic recovery.
He said the programme would:
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Expand fiscal space
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Increase investment in human capital and climate resilience
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Improve revenue administration
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Strengthen budget execution and statistical systems
These measures are expected to ensure that public funds reach frontline services with greater efficiency and transparency.
Key Federal-Level Reforms
At the federal level, the PRID-MPA will focus on:
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Tax policy and tax administration reforms
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Scaling up the Integrated Financial Management Information System (IFMIS)
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Expanding the linked e-procurement platform
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Implementing targeted subsidy reforms
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Strengthening the national statistical system led by the Pakistan Bureau of Statistics
These reforms aim to improve planning, reduce waste, and enhance evidence-based policymaking.
Sindh’s Provincial Programme
In Sindh, the World Bank-backed programme is expected to:
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Increase provincial revenues
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Speed up and improve transparency in government payments
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Expand the use of data in policy and budget decisions
The province is also set to benefit from improved financing for primary healthcare and education, particularly in underserved areas.
Part of Broader International Support
The approval follows a $47.9 million World Bank grant earlier this year aimed at improving primary education in Punjab, highlighting continued international engagement in Pakistan’s reform agenda.
The development comes amid concerns raised in a recent IMF–World Bank report, which pointed to fragmented regulation, opaque budgeting, and weak governance as major barriers to investment and revenue growth in Pakistan.
Outlook
The World Bank’s latest financing is seen as a crucial step toward restoring confidence in Pakistan’s economy. If implemented effectively, the reforms could help stabilise public finances, strengthen institutions, and improve essential services for millions of people across the country.
