The World Bank has approved $700 million in financing for Pakistan. The funding aims to strengthen macroeconomic stability and improve public service delivery.
The support comes under a multi-year initiative designed to address fiscal and governance challenges. The approval marks a significant step in Pakistan’s ongoing economic reform efforts.
Details of the Funding Package
The financing falls under the Public Resources for Inclusive Development programme. This initiative follows a multiphase programmatic approach.
Under the plan, total financing could reach $1.35 billion over several phases. The current approval represents the first major disbursement.
Out of the $700 million, $600 million will support federal programmes. The remaining $100 million will fund a provincial programme in Sindh.
Focus on Inclusive and Sustainable Growth
World Bank officials emphasised the need for stronger domestic resource mobilisation. They also highlighted efficient and transparent use of public funds.
The programme aims to ensure predictable financing for schools and healthcare facilities. It also supports fairer tax systems and stronger data-driven decision-making.
At the same time, priority social and climate-related investments will be safeguarded. Strengthening public trust remains a key objective.
Strengthening Fiscal Foundations
Economists at the World Bank stressed that fiscal reforms are essential for stability. Stronger institutions and sound budget management remain central goals.
The programme introduces a nationwide reform approach. It seeks to expand fiscal space and improve revenue administration.
Investments will also support human capital development and climate resilience. These steps aim to deliver measurable results across Pakistan.
Federal-Level Reform Measures
At the federal level, the programme focuses on improving revenue collection fairly. Budget planning and execution systems will also be strengthened.
Key measures include tax policy and administration reforms. The initiative will also scale up the Integrated Financial Management Information System.
Linked e-procurement platforms will improve transparency. Targeted subsidy reforms will enhance fiscal efficiency.
The national statistical system will also be strengthened. This effort will be led by the Pakistan Bureau of Statistics.
Provincial Support for Sindh
In Sindh, the programme targets higher provincial revenues. It also aims to speed up payments and improve transparency.
Expanded use of data will guide provincial decision-making. Public resources will better support primary healthcare facilities and schools.
These changes are expected to improve service delivery and equity across the province.
Broader Economic Context
Pakistan continues to face challenges from fragmented regulation and weak budgeting practices. These issues have affected investment and revenue performance.
The new World Bank financing aims to address these structural weaknesses. It supports reforms that improve accountability and efficiency.
